This week's key UK event risk is Wednesday's publication of minutes from the November 9/10 BoE MPC meeting. These are expected to reveal that the UK base rate was raised by 25bp to 5.0% by an 8-1 vote, with ultra-dove David Blanchflower likely to have been the lone dissenter.
GBP/USD tripped stops above 1.8968 (Friday's top) en route to a six-day high of 1.8986 during the European morning, as the pound elicited benefit from news that Nasdaq has launched a fresh GBP 2.7bn cash bid for the LSE (FT website). Touted offers at 1.9000 are an appreciation obstacle north of 1.8986. The figure sell orders might include option-related interest, re: an estimated quarter-yard 1.9000 expiry at today's 10am EST NY cut. Further sell orders are tipped at 1.9025. Large 1.9040-50 and 1.9075 option strikes also roll off today.
News-wise: Saudi Arabia is threatening to suspend diplomatic ties with Britain re: an investigation into an alleged "slush fund" (Sunday Times). GBP/USD bids are tipped at 1.8930 and 1.8900. Intra-day lows just shy of 1.8930 were plumbed in early European trade.
No comments:
Post a Comment