Cable has drifted a little lower in early European trade, presently at 1.6475. Overnight the pairing got some much needed relief from the release of encouraging RICS and BRC data, which helped take the pairing back over 1.6500 for a while.
July RICS house price balance came in a -8.1, better than the expected -10.0, and the highest read since August 2007. Meanwhile July BRC like- for- like retail sales rose +1.8% y/y.
The proximity of tomorrow’s BOE quarterly inflation report and June jobs data remain hurdles to accelerated gains, although both must be somewhat discounted in the present rate.
For today, technical supports at 1.6460 and 1.6430, resistances up at 1.6520/30 and 1.6550.
