The pound burst higher today but it’s been caught in a tight range so far today.
Early in US trading, GBP/USD perked up to 1.6765 but the gains proved fleeting and the pair is back near unchanged on the day at 1.6750. A data point that doesn’t get much attention is the UK BRC shop price index, which fell 1.7% y/y compared to -1.5% expected. It shows that inflationary fears might be misplaced.
Then again, inflation is a lagging indicator and upbeat UK growth numbers will keep the bid tone in cable.
cable daily
I like buying cable but a dip below 1.6700 is a more attractive spot to get on board.
Some minor bids extend to the European low at 1.6725. More at 1.6710/1.6700. More at 1.6680 and better bids at 1.6660.
