Market Snapshot – Stocks Rebound, Pound is the Star

Pound Ratchets Higher on Strong CPI

The darling of the day, as far as the markets are concerned, has to be the pound as it rose higher on stronger inflation data and broke to a 11-month high during the course of the day today. The pound had been trading in a strong manner since the middle of last week as the expectations from the BOE meeting and statement this week led to a large round of buying in the pound over the last few days and kept the GBPUSD pair near the highs of its range since the beginning of the week. The underlying strength was clear for everyone to see and the spark came in the form of strong inflation data which helped the pair to push through 1.3250 during the day. It has since corrected lower and looks pretty volatile at this point of time.

Stock Markets Continue Rebound

The stock markets continued to trade in a strong manner as the sentiment turned in favor of risk and this has helped the markets to rebound and move higher. The US stock markets are also expected to continue the strength in the markets as the Apple share prices began to move higher in anticipation of a major product launch that is scheduled for today. It remains to be seen whether the markets would be able to hold on to the gains at the end of the day but for now, they do look to have a strong close.