Cable is currently trading close to 1.9650, against a big-picture backdrop of gain consolidation to a London morning 12-day high of 1.9670. A 1.9650 option strike rolls off at today's 10am EST NY cut (15:00GMT). There is another 1.9650 option expiry tomorrow (Tuesday).
This week's key UK event risk comes in the form of tomorrow's 09:30GMT disclosure of UK December inflation figures. Annualized CPI is forecast to rise to 2.8/2.9%, although there is a real risk that it might come in as high as 3.1%, re: last Thursday's unexpected 25bp UK base rate hike to 5.25%. BoE Governor Mervyn King is duty bound to write a letter of explanation to Chancellor Gordon Brown if UK CPI comes in above 3.0%.
CPI rose to 2.7% in November, from 2.4% in October. 2.0% is the BoE's target level. Post-UK CPI: Andrew Sentance is due to deliver his first ever speech since joining the MPC last Autumn, at 12:00GMT. "Current Issues in UK Monetary Policy" is the title of Sentance's slated speech.
No comments:
Post a Comment