Cable dropped to 1.9800 bids after the 08:30GMT disclosure of April's sub-forecast 2.4% annualized rise in UK core output producer prices. 2.7% was expected. Demand at 1.9820 was propping GBP/USD into the data release.
Sub-1.9800 prop points include 1.9778 (Friday's NY session low), 1.9762 (Friday's European morning one-month low), 1.9750 and 1.9710. GBP/USD resistance levels include 1.9845 (Friday's rebound high from 1.9762) and 1.9880.
EUR/GBP offers are touted at 0.6840, with some buy stops pegged above 0.6845. Exotic option barriers reside at, and just ahead of, 0.6875.
The British Chambers of Commerce predicts that annualized UK economic growth will fall to 1.9% in Q1 2008, from 3.0% in Q4 2006 (City AM).
UK April inflation figures will be unveiled at 08:30GMT tomorrow. Annualized CPI is forecast to fall to 2.8%, from 3.1% in March. Annualized RPIX is forecast at 4.5%m from 4.8% previously.
This week's key UK event risk is Wednesday's publication of the quarterly BoE inflation report.
No comments:
Post a Comment