The talk from MPC member, John Gieve, of a determination to rein in inflation provided a brief boost for the Pound but strong bidding has again held the line at 0.6750 in EUR/GBP. The latest bounce from the level due to buying from a US bank has nudged the cross to a new indicated high of 0.6771, just eclipsing the early London high of 0.6770.
Official rhetoric has heated up the rate debate but with King tainting his hawkish views with reference to the lower energy costs the market is not getting ahead of itself with the November hike position. UK and US players are still reportedly offering Cable and this latest assault on Sterling looks to have provided the vehicle for the EUR/GBP lift to 0.6771. Still need to see the cross hold the 0.6770 break before a range break can be called.
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