Important events today:

7:00 UTC – GB: inflation for October…

13:30 UTC – US: retail sales for October.

From the opening of the European trading session, Britain will release the inflation release for October – the market expects the figure to rise to 10.5% and such a scenario is justified as the energy and food crisis is driving up prices in the United Kingdom. Moreover, the Bank of England itself was expecting 11% inflation in late fall and today we might see the figure above the median forecast.

This is a negative signal for the pound as the inflation rate in Britain will in this case be more and more ahead of the American figure. On the other hand, there is still a good demand for government bonds in the British debt market and the market has reached a 2-month high, which is positive for the British currency.

Recommendation: flat 1.1810 – 1.1940.