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Inflation Worries At The Old Lady?

GBP

GBP/USD sits 10 pips softer on the day into London hours, last dealing at $1.3850. This comes after the rate managed to benefit from the broader USD weakness on Wednesday, topping out at $1.3892, before paring some of the gains into the NY close.

  • BoE Deputy Governor's Cunliffe & Ramsden seemed to identify a least a marginal uptick in worry re: inflationary pressures on Wednesday, while Ramsden left the door open to ending the Bank's current GBP150bn asset purchase programme early.
  • Elsewhere, local UK news continues to focus on the disagreements surrounding the rollback of the bulk of the remaining COVID restrictions on Monday 19 July.
  • Initial technical support is located at the July 2 low/bear trigger ($1.3733), while resistance is seen at the 50-day EMA ($1.3937).
  • Labour market data and an address from BoE's Saunders (covering inflation matters) headline the UK docket on Thursday.
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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