Traders Buy the Pound - than Sell the Pound!

Today was the story of two numbers for the Pound, the;

1. Consumer Price Index
2. Consumer Price Index Core Number

Firstly the Consumer Price Index came in a lot higher than expected at 3.3 percent and as a result traders bought the pound. But those who dug a little more found the Core Inflation number was only 1.5 percent well in line of the Bank of England's target and those who bought the pound vs the Euro and Dollar than sold it heavily.

None the less the inflation number doesn’t bare well for the UK Housing market as there is really no chance of a Interest Rate Cut in the UK any time soon as Bank of England's Governor King had to write a letter to Chancellor of the Exchequer explaining why inflation is over target.

In this letter King has pointed out "as things stand, inflation is likely to rise sharply in the second half of the year to above 4 percent".

The Bank of England's primary role is to insure Financial Stability and to keep Inflation Below 2 percent.

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