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GBP/USD extends rebound gains as European stocks open in the red

The European stock markets have just reopened and it has been a rather rude awakening for the major indexes here this morning. Of course that was always going to be the case, with the heavy losses seen across Asia and the Chinese markets today. The DAX has literally just reopened below 16,400 and the FTSE 100 is almost 100 points in the red too. The losses for the FTSE 100 have been clearly impacted by the higher UK inflation data this morning and that has helped the Pound to rebound further since my last update. The UK currency is making headway versus the Dollar, Yen and the Euro now. The GBP/USD is lifting back above 1.2650, from a pre-CPI release low at 1.2597. The drop back in oil prices again so far this morning and the higher pound now are both driving the FTSE 100 deeper into the red in early trading. The outlook for UK interest rates is a clear driver behind all this too and the prospect for yet deeper entrenched UK inflation is coming to the assistance of the Pound now this morning. The GBP/USD is currently trading at 1.2666

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