With the US Dollar Index increasing consecutively for the last week, due to stronger labor market data and growing expectations that a debt deal will be secured to avert a US government default, the USD is headed for its timely weakness. The excitement around the Debt- deal has not included riskier currencies, such as an economic slowdown in China.
That being said, the highly anticipated UK CPI is finally set to fall below 10% to 8.2% after months. This might mean that the BoE might pull back on raising rates as much as it was intended to. On the other hand, if the UK CPI report rises above expectations, a 25 basis point rise is intact.
It will be interesting to see how this will influence one of the top currencies in the market. All trading carries risk. Please see the following link to learn more: