Trial now
US TSY FUTURES

Poised to Extend Midday Lows

EURGBP TECHS

Recovery Holds For Now

EURGBP TECHS

Recovery Holds For Now

Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

The aggressive repricing of the BoE's hiking cycle in short-end rate markets, alongside a pullback in the broader DXY, have combined to support cable in recent sessions, outweighing any growth fears surrounding premature monetary tightening, touted fiscal headwinds & soaring energy costs. For now, the rate is little changed on the day, just above the $1.3800 mark into London dealing.

  • A reminder that GBP/USD traded firmer Tuesday, with our technical analyst noting that the move extended the rally that started in late September. The pair has moved above the 50-day EMA and Tuesday saw a breach of the 76.4% retracement of the Sep 14 -29 downleg ($1.3795). The break higher opens the way to the Sep 14 high ($1.3913). On the downside, a firm short-term support has been defined at the Oct 6 low ($1.3544). Meanwhile, initial support is located at $1.3709/3670.
  • There isn't anything in the way of notable FX option expiries to be concerned with come today's NY cut.
  • UK CPI data headlines the domestic docket today. Please refer to our summary bullet for more colour surrounding the data ahead of the release.