UK CPI is due Tuesday
Cable is down only 50 pips today but the decline is doubly disappointing because it comes after a sharp fall on Friday and because it broke through the May 31 support level. That's an area that should have provided some decent support ahead of the FOMC meeting.
Instead, cable is already breaking down with little support now separating it from the January flash-crash low of 1.2441.
The main hurdle ahead of the FOMC decision is the UK CPI report on Tuesday at 0830 GMT. The consensus is for a 0.3% m/m and 2.0% y/y rise. A miss to the downside would further wound the BOE hawks and compound the pain from last week's poor GDP and industrial production numbers.
