Stop me if you've heard this one before but... 12 Dec
The truth seems to offend some people but I make no apologies for saying it as I see it, and I make no arrogant claims that I am always right or omnipotent. I have been in this business long enough, and taken enough beatings, to know that's a foolish stance to take.
As per my comments in my PPI where I was accused of being unpatriotic, and I'm sure there were others lurking who would add myopic into that mix, I dared suggest that there was ntg in the CPI data to faze the BOE.
It was an observation based, as I referenced, on the BOE's last inflation report where they repeated that they expect inflation to peak around these levels and at around this time. Ok, if we do continue going up with GBP TWI making solid gains in the past few months then we know the old excuse of weaker pound is wearing a bit thin and maybe more of an inherent inflation problem needs to be addressed with greater vigour.
But that is then/when/if and not now or anything to shake the MPC tree into action this Thursday. Accordingly GBPUSD has stopped bang on 1.3380 where I highlighted sell interest in my order board and PPI post. Not only that but we're now chewing through decent bids/support at 1.3320 to look at a recently-held support line around 1.3300. That's a biggie so shorts should take some money off the table down here, if not all.
EURGBP held 0.8800 where we also had good bids and now looking at 0.8850 both bolded levels in my order board. Similarly longs, especially intra-dayers shouldn't be too greedy.
GBP bulls will be glad of the dip buying opportunity and be hoping for a bounce. Just don't expect me to join your ranks anytime soon.