Demand at 1.9480 is currently propping cable, against a big-picture story of loss consolidation. Further bids are noted at 1.9460/70 and 1.9430/40. 1.9466 was last Friday's floor. 1.9433 was yesterday's six-day low. 1.9420 (last Tuesday's NY session base) and 1.9400 are support points south of 1.9430.
GBP/USD plumbed one-month lows just shy of 1.9400 seven days ago, on the back of January's softer-than-expected UK inflation figures. Cable resistance levels are located at 1.9500, 1.9520 and 1.9550 (today's Asian session top). Sterling ascended to threaten 1.9520, a former stop-loss level, after the 09:30GMT disclosure that annualized UK M4 money supply growth rose by a higher-than-expected 13.0% in January. 12.7% was forecast.
In written evidence for the Commons TSC, the BoE yesterday said that it would be "unwise to ignore money supply data entirely". UK rate hawks are therefore hopeful that the base rate might be hiked to 5.5% next month. Minutes from the February 7/8 BoE MPC meeting will be published at 09:30GMT tomorrow. IFR forecasts a 7-2 vote.
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