The U.K. finally got some good news regarding inflation, for those keen on rate hikes. The CPI indicator, which registers the fluctuation in consumer goods prices, increased more than expected in March. Although expectations for Bank of England rate hikes seem to be a distant memory, rising prices are still considered a positive as so many other countries languish amid deflationary pressures.
Speaking of deflationary pressures, the yen continues its strength on the back of dollar weakness and outflows in the Chinese renminbi. Bloomberg this morning reported that a devaluation in the renminbi against the yen has been taking place, although it has not sparked volatility in the markets in the way that the devaluation of the renminbi against the U.S. dollar has. Is China devaluing their currency without spooking the markets?
EURUSD: A bit down today on trading.
GBPUSD: Up a quarter of a percent on a stronger than expected CPI reading.
AUDUSD: Aussie up the most of the major currencies as commodities continue to rebound.
USDCAD: Canadian dollar has gained a little along with commodity currencies.