Sterling Tumbles Broadly Amid Speculation of BoE Dovish Turn
| Action Insight Mid-Day Report 4-22-24 |
Sterling Tumbles Broadly Amid Speculation of BoE Dovish Turn |
British Pound faced broad selloff today, continuing its decline in response to comments made last Friday by BoE Deputy Governor Dave Ramsden. Ramsden expressed he is now much less worried about inflation, and expects upcoming data to show significant slowdown in April. More importantly, he emphasized that UK inflation trends are likely to realign more closely with Eurozone rather than with the US. The comments now set some expectation, contingent on April CPI data, monetary policy easing by BoE preceding similar moves by Fed and following ECB. This would place the August BoE meeting squarely in focus as a possible juncture for the initial rate cut. Elsewhere in the currency markets, Euro is trailing as the second worst by some distance. Commodity currencies remain in pole position, supported by the strong rebound in risk sentiment, as seen in major European stock indexes and US futures. Dollar, Swiss Franc and Yen are trading in middle positions, bounded in tight range against each other. Attention in the currency markets is now turning to forthcoming PMI data from Australia, Japan, the Eurozone, the UK, and the US, which is expected to provide further direction... |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.2336; (P) 1.2402; (R1) 1.2437; More... GBP/USD's decline extends further to as low as 1.2301 so far today. Intraday bias stays on the downside for 161.8% projection of 1.2892 to 1.2538 from 1.2708 at 1.2207 next. On the upside, above 1.2391 minor resistance will turn intraday bias neutral and bring consolidations first, before staging another fall. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:01 | GBP | Rightmove House Price Index M/M Apr | 1.10% | 1.50% | | 01:15 | CNY | PBoC 1-y Loan Prime Rate | 3.45% | 3.45% | 3.45% | | 01:15 | CNY | PBoC 4-y Loan Prime Rate | 3.95% | 3.95% | 3.95% | | 12:30 | CAD | Industrial Product Price M/M Mar | 0.80% | 0.80% | 0.70% | 1.10% | | 12:30 | CAD | Raw Material Price Index Mar | 4.70% | 2.90% | 2.10% | | 12:30 | CAD | New Housing Price Index M/M Mar | 0.00% | 0.10% | 0.10% | | 14:00 | EUR | Eurozone Consumer Confidence Apr P | -14 | -15 |
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