- Research points to increased inflation, increased inflation persistence, and increased inflation volatility associated with climate shocks, policies, and spillovers
- Carbon price shocks lead to more inflation persistence and then oil price shocks
- Redistribution of revenues from carbon taxes or emission certificate auctions have economic effects of direct interest to central banks
The GBPUSD is trading near session highs and is retesting it's 100/200 hour moving averages near 1.2258/1.22599. Move above those levels should tilt the bias more to the upside technically. The GBPUSD up-and-down price range today is 47 pips which is much less than the 88 PIP average over the last 22 trading days. So there is room to roam on a break to new session highs and above the aforementioned moving averages.