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Aussie higher after CPI figures

Australian CPI rose 0.2% in the December quarter 2014, compared with a rise of 0.5% in the September quarter 2014. This was below market expectations on 0.3 rise. CPI rose 1.7% through the year to the December quarter 2014, compared with a rise of 2.3% through the year to the September quarter 2014. However, Trimmed Means CPI data beat market forecast on 0.5% increase and rose by 0.7%. 
 
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Sterling at 1.52 handle

After it went below 1.51 handle, minutes after UK CPI figures were released showing further decline in inflation, this month to 0.5%, Sterling equally quickly rebounded. Support for Sterling came from Bank of England governor Mark Carney who said it was "possible" that overall living costs will start to fall in the coming months on due to the decline in petrol and food prices.
 
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Eurozone inflation down at -0.2%

Eurozone CPI missed market expectations on no change and level of 0.0% and fell to -0.2% in December. Core CPI rose to 0.8%. This negative rate for euro area annual inflation in December is driven by a fall in energy prices (-6.3%, compared with -2.6% in November), while prices remain stable for food, alcohol & tobacco (0.0%, compared with 0.5% in November) and non-energy industrial goods (0.0%, compared with -0.1% in November). The only annual increase is expected for services (1.2%, stable compared with November). 
 
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GBP/USD Daily Forecast - 16 December

From the UK, yesterday, CBI Industrial Orders Expectations data was released. The total order book balance from the Confederation of British Industry's (CBI) monthly industrial trends survey rose in December to +5, its highest level since August and well above the survey average of -16. Analysts were anticipating smaller balance of +3.

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