Cable Flat Ahead Of UK CPI

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.