2016.10.1803:12:00UTC+00Pound Rises Ahead Of U.K. CPI Data

The British pound strengthened against the other major currencies in the Asian session on Tuesday, as traders await the nation's inflation data for September, due later in the day.

The Office for National Statistics is slated to issue U.K. consumer and producer prices for September at 4:30 am ET. Inflation is forecast to rise to 0.9 percent from 0.6 percent in August.

Output prices are forecast to climb 1.1 percent annually and input prices to rise 7.4 percent in September. In the meantime, U.K. house prices data is also due.

The Asian stock markets rose as crude oil prices increased above the $50 mark in Asian trades. Crude for November delivery is currently up 0.27 percent or $ 50.21 per barrel. The crude oil prices slipped amid signs that Iran will pick up the slack when Saudi Arabia and Russia curb output. Traders expect the oil market not likely to be oversupplied.

Concerns about the Chinese economy and anxiety ahead of the third U.S. presidential debate on Wednesday served to keep a lid on overall gains.

Monday, the pound fell 0.12 percent against the euro, 0.02 percent against the U.S. dollar, 0.11 percent against the Swiss franc and 0.28 percent against the yen.

In the Asian trading, the pound rose to a 5-day high of 1.2272 against the U.S. dollar, from yesterday's closing value of 1.2182. The pound may test resistance around the 1.25 region.

Against the euro, the yen and the Swiss franc, the pound advanced to 4-day highs of 0.8982, 127.38 and 1.2109 from yesterday's closing quotes of 0.9025, 126.53 and 1.2047, respectively. If the pound extends its uptrend, it is likely to find resistance around 0.87 against the euro, 132.00 against the yen and 1.26 against the franc.

Looking ahead, U.K. consumer price, producer price, retail price indexes for September and house price index for August are due to be released at 4:30 am ET.

In the New York session, Canada manufacturing sales data for August, U.S. CPI data for September and NAHB's U.S. housing market index for October are slated for release.

At 8:00 am ET, New Zealand's Global Dairy Trade auction is due to be held.

At the same time, European Parliament's Brexit negotiator Guy Verhofstadt is expected to speak at conference on future of EU budget, reform of EU institutional set-up, in Brussels.

At 9:00 am ET, European Commission First Vice-President Frans Timmermans is expected to speak at the General Affairs Council meeting, in Luxembourg.