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Cable Has Brief Show Below $1.23 As BoE Questions Circle And USD Remains Underpinned

GBP

The USD remains underpinned post-FOMC, which has allowed GBP/USD to briefly show below $1.2300 this morning, with spot last $1.2305.

  • Local uncertainty may also be weighing as well, with plenty of questions evident re: today’s BoE policy decision.
  • While markets now lean more towards a BoE hike than no move later today, it is by no means clear cut (~14bp of tightening is priced).
  • A quick reminder that only 5/57 surveyed by BBG look for no move in rates today, although many of those looking for a hike have applied heavy caveats post-CPI.
  • Technically, the April 3 low ($1.2275) provides the initial point of support.
  • Conversely, initial resistance comes in at the September 7 low, $1.2446.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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