We were hoping that yesterday’s Bank of England report would give sterling some direction, well it certainly did that! The bank lowered its inflation expectations over the next two years, resulting in the conclusion that there is no chance of an interest rate rise in the New Year as the market was coming to expect in recent weeks. This was bad news for sterling, and after pausing briefly at the 14750 support, we continued to trade lower.
Today we have UK Retail Sales at 09:30, then the usual Thursday releases from the US at 13:30. See below.
GBP EUR – Support 1.4680, 1.4650 then 1.4600
Resistance 1.4780 then 1.4810-25
GBP USD – Support 1.7137 then 1.7080
Resistance 1.7200 then 1.7302
DATA: UK Retail Sales 09:30
US Housing starts, Jobless claims, Industrial Production and Philly’ Fed’ all at 13:30. The Industrial Production will be the most important figure today.
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