On the economic calendar today, UK will release CPI, core CPI, RPI, core CPI, PPI input prices, PPI output prices, PPI core output prices and DCLG hoe price index at 09:30 GMT. Also, we have MPC member Michael Saunders scheduled to speak at 08:40 GMT and Deputy Governor for Financial Stability, Jon Cunliffe, will participate in round table.
The Day Ahead with Intra-day
Despite cable’s resumption of recent decline from 1.3283 (Dec 31) to 1.2955 yesterday, subsequent rebound to 1.3034 suggests temporary bottom is in place and consolidation with upside bias remains for gain towards 1.3080/90,
Bids are noted at 1.3005-00 with stops below 1.2980 while offers are tipped at 1.3045/50 with more above and stops above 1.3100.
GBP/USD – 1.3021 Cable met renewed selling at 1.3002 in Asian morning and briefly dropped to an 18-day low at 1.2955 in European morning due to continued concern of an interest rate cut from the Bank of England later this month. .The British pound went through a volatile session on Tuesday. price then found fresh buying and gained to 1.3015 Despite retreating again to 1.2974, the pair rallied to an intra-day high of 1.3034 in New York afternoon on cross-buying in sterling as well as usd’s weakness before stabilizing