Important events today:

14:30 UTC – US: crude oil inventory data from the Department of Energy.

The UK National Statistics Office presented inflation data for March. The indicator fell by 0.3 p.p. to 10.1%. Core inflation, which does not include food and energy prices and which is closely monitored by the Bank of England remained unchanged at 6.2%. The market was expecting a strong decline in both indicators, but no miracle happened. The Bank of England will have to continue to aggressively raise interest rates in the coming meetings as the difference between the central bank rate and core inflation is now 2%.

Underlying inflation in Britain is now higher than in the Eurozone, USA and Japan and therefore the monetary authority will have to raise the rate to at least 5%, as the US Federal Reserve has already done. Thus, the British monetary authorities will be more likely to raise rates than their US counterparts in the coming months, which is good for the pound.

Recommendations: Buy 1.2408/1.2375 and TP 1.2487.