Sterling has elicited support at 1.9670/75 following its retreat from a fresh intra-week peak of 1.9707. Sell interest at 1.9670/75 temporarily capped GBP/USDearlier today. Intra-day highs just shy of 1.9670 were notched yesterday, pre-UKservice sector PMI. Gain consolidation from yesterday's low of 1.9537 is the big-picture story, withthe risk that the BoE MPC might hike the UK base rate by another 25bp to 5.5% asearly as this Thursday helping underpin.
Thursday hike risk has risen on the back of the strong BRC data disclosed at 00:01GMT, which revealed that UK like-for-like retail sales rose by an annualized 3.1% in January.Option-wise: 1.9625, 1.9620 and 1.9600 strikes roll off at today's 10am EST NY cut (15:00GMT). Flagged offers at 1.9720 and 1.9750 (last Friday's post-NFP peak) are appreciation obstacles north of 1.9707.
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