Free Trial

GBP struggled yet again on Wednesday, as......>

CABLE: GBP struggled yet again on Wednesday, as the latest set of inflation data
broadly missed estimates. This prompted a $1.3010 print in GBP/USD, representing
a fresh YtD low, although rates markets were relatively unchanged after the
data. MNI's PINCH model still sees the probability of an August BoE rate hike at
just under 80%.
- GBP/USD calls were in vogue, with focus on expiries just after the BoE's Aug
rate decision, with strikes layered from $1.3150-1.3500.
- There was a late, limited relief rally on a report that an extension to the
Article 50 deadline is being discussed in the backrooms of Brussels, as MEPs &
officials from EU member states weigh up plans to avoid a cliff-edge Brexit
(although the horizons touted vary).
- GBP/USD last $1.3075, support noted at the aforementioned YtD low ($1.3010)
with resistance at the 61.8%/76.4% retracements of the move from $1.3120 to
$1.3010 ($1.3078/94), which has seemingly limited cable to a high of $1.3083.
- Focus now turns to today's UK retail sales release, a written interview with
BoE's Tenreyro on Friday & an address from BoE's Broadbent on Monday.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.