Heads up on the UK inflation data due at 09.30 GMT
Seems like the market is getting a smell of some bullish data and that is definitely the risk side again given the amount of GBP selling lately.
Oil price will continue to have impact and the time-lag into the data means the influence of falling prices will continue to remain in play for a while yet but a sudden surge in the pound suggests better data than expected.
December's CPI data came in higher than previous and expected and Ryan had the full breakdown here
GBP rallies can still be sold with GBPUSD 1.4525-35, 1.4550 then 1.4600 the initial potential areas. Downside risk now accelerates through 1.4460 then 1.4400.
EURGBP is toying with good support/demand around 0.7700 after failing into 0.7750 again. Next lines in the sand at 0.7680, 0.7660 0.7630 and 0.7600.
Beware of buy rumour/sell fact scenario playing out after the release.
Currently 1.4508 and 0.7700
Here the forecasts:
