The GBP/USD opened in Asia at 1.9705 after moving higher on broad USD weakness and a growing wariness that the BOE might surprise again with a hike Thursday. The GBP was given a boost when a REC/KPMG report suggestedthat UK worker pay and demand for staff was "robust". The GBP/USD pushed up to 1.9722.
This was followed by the Nationwide Consumer Confidence Survey that showed a 1 point increase to 84 from the lowest point since the survey started in 2004. The market shrugged off the result and one very good UK seller pushed the GBP/USD down to 1.9686 before bouncing back to 1.9700/10 where it stayed forthe balance of the session. The EUR/GBP consolidated between 0.6587/93.
There is growing number of analysts warning that the BOE just might pull the tightening trigger again on Thursday even though surveys show an overwhelming majority predicting they will stay on hold. Recent secondary data has been strong and the MPC will get a peak at next Tuesday's CPI before they vote. The growing expectation that a rate hike may occur leaves the GBP a bit vulnerable if the MPC votes to stay on hold. UK IP out later today.
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