UK Producer Prices fall in August. Pound, Euro decline vs. Dollar in Forex Trading. | CountingPips Forex Blog

September 8, 2008 - Forex Economic News

UK Producer Prices fall in August. Pound, Euro decline vs. Dollar in Forex Trading.

U.K. Producer Prices declined more than expected in the month of August as lower oil prices helped cool off U.K. factory inflation according to a release by National Statistics today. Producer prices fell by 0.6 percent in August, marking the largest one month drop in 22 years. The fall in producer prices surpassed market forecasts which were expecting a 0.1 percent increase for August following July's revised 0.5 percent increase. On an annual basis, UK Producer Prices fall, Pound declines in Forex Trade producer prices registered a 9.7 percent increase over last August following July's 10.3 percent annual increase and below market forecasts expecting a 10.0 percent annual increase. Falling petroleum prices contributed the most to the lower producer prices as petroleum dropped by 4.8 percent in August while other manufactured products also showed a monthly decrease. Core producer prices, excluding petroleum, food and tabacco, registered a 0.1 percent decline for August following a 0.3 percent rise in July and below forecasts of a 0.3 percent rise.

Euro, Pound decline vs. Dollar in Forex Trading.

The U.S. dollar has gained against both the European euro and the Great British pound sterling in forex market today. The euro, trading at approximately 1.4094 dollars per euro in the afternoon of the U.S. session, has fallen to its lowest exchange rate verses the dollar since October 2006 when the exchange rate traded as low as 1.4015. The pound meanwhile is also trading at a multiyear low against the U.S. dollar as the British currency fell below 1.7500 dollars per pound today to reach a level not seen since April of 2006. The pound has declined against the dollar for the last seven consecutive weekly closes and is down from this week's open of approximately 1.7657 U.S. dollars per pound.

GBP/USD Chart - The Great British pound continued to decline vs. the US dollar today and traded at the lowest level since April 2006(Monthly Chart).

Forex Chart

tags: uk, producer prices, inflation, forex trading

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