How does 10% inflation and a recession in early 2023 sound?
Oh, and inflation risks are to the upside.
That's the long-and-short of the BOE decision today along with rate hikes continuing to 2.50% by the middle of next year. The 2% fall in the pound today will no-doubt add to inflationary pressures while another 1.2% climb in oil prices won't help.
The weekly cable chart highlights a near-total lack of support until the May 2020 low of 1.2085. The weekly RSI is now at just 18.2 so there's would normally be scope for an oversold bounce but this is a fundamentally-driven move so I wouldn't hold my breath.
