Tripped stops helped propel cable to three-month highs just shy of 1.9870 in early European trade, as the USD came under across-the-board selling pressure. 1.9840 and 1.9850 offers were absorbed en route to those highs. 1.9840/50 is now pullback support window. 1.9837 was today's Asia high. Touted offers at 1.9880 and 1.9900 are bull targets north of 1.9870.
Above-figure obstacles include 1.9917 (Jan 23, 15-year peak), 1.9975 and 2.0000. A raft of exotic option exposure is located at, and above, 2.0000. US March producer price inflation and US February trade data is due at 12:30GMT. Core PPI is forecast +0.2% m/m. Trade deficit forecast: $60.0bn. April's Michigan Sentiment index ensues at 14:00GMT. Forecast: 87.5.
BoE Deputy Governor John Gieve is slated to speak at 11:45GMT. Gieve voted in favour of January's 25bp UK base hike to 5.25%. Minutes from this month's MPC meeting will be published next Wednesday (Apr 18). UK March inflation figures will be revealed next Tuesday. Annualized UK CPI unexpectedly rose to 2.8% in February, having fallen to 2.7% in January.
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