Cable fell by over half-a-cent to a low of 1.9556 after the 09:30GMT MPC minutes disclosure that the UK base rate was held at 5.25% on March 8 by an 8-1 vote with lone dissenter David Blanchlower voting for a 25bp cut. Sterling has since recouped those losses, amid a perception that the minutes represent "old news" re: yesterday's UK CPI upside surprise.
GBP/USD rallied to 1.9650 offers in early European trade, as the continent absorbed last night's hawkish comments from MPC member Kate Barker. Bull targets above include 1.9674 (Feb 27 high), 1.9700, 1.9750, and 1.9800. EUR/GBP rallied to 0.6800 offers on the back of the 8-1 MPC vote shock. A 0.6800 option strike rolls off at today's NY cut (14:00GMT).
UK Chancellor Gordon Brown will deliver his 11th and final UK budget from 12:30GMT. Brown is expected to succeed Tony Blair as UK PM this summer. Today's key US event risk is the 18:15GMT FOMC statement to accompany an (expected) unchanged Fed funds rate verdict. Tomorrow's key UK event risk is the 09:30GMT unveiling of February retail sales.
No comments:
Post a Comment