Conjecture that Fed Governor Bernanke will strike a hawkish tone when he delivers his semi-annual monetary policy testimony (part one) in just over 24 hours has helped depress GBP/USD from post-US trade data highs north of 1.9450.
A consulting shop is touted as the source of the Bernanke conjecture.1.9400 is a sterling support point. One-month lows just shy of 1.9400 were plumbed during the London morning, after the 09:30GMT disclosure of January's softer-than-forecast UK inflation figures.
These have cast doubt on the expectation that another UK base rate hike is in the pipeline. Sub-1.9400 bear targets/prop points include 1.9385, 1.9317 (Jan 10 floor), 1.9280, and 1.9260.
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