GBP

GBPUSD falls despite higher CPI today, but finds support at the 200 hour MA

• 100 hour MA above is the key target if buyers are to assume more control (at 1.27779)

Goldman Sachs raises BOE terminal rate forecast to 5.50% from 5.25%

• Goldman Sachs now sees a further hike in November

GBPJPY Technical Analysis

• The GBPJPY bullish bias remains intact.

Citi revises higher BOE terminal rate expectation to 5.25%

• Adds that the risks are still skewed towards a more hawkish direction

UK June CBI trends total orders -15 vs -17 expected

• Latest data released by CBI - 21 June 2023

Sterling succumbs to a move lower, fails to take heart on inflation data

• GBP/USD falls to the lows for the day at 1.2705 currently

Pound spike on inflation data fairly short-lived

• The data doesn't change much for the short-term outlook for the BOE

Hot UK inflation continues to vindicate higher BOE rates

• It's another report that reaffirms the narrative that more rate hikes are needed

UK May CPI +8.7% vs 8.4% y/y expected

• Latest data released by ONS - 21 June 2023

GBPUSD trades below 100 hour MA. Sellers trying to make a play

• The 100 hour MA and the 61.8 off the daily chart both near 1.2760 area

BOE's Hall: Moves in UK yields have tested resilience of liability-driven investment funds

• Recent moves in yields have once again tested liability-driven investments funds

GBPUSD Technical Analysis - Policy Divergence

• The GBPUSD takes off as the market expects more from the BoE and the Fed goes on pause.

UK 2-year Gilt yields rise to 5% for first time since 2008, up 7 basis points on day

• UK 2-year Gilt yields rise to 5% for first time since 2008, up 7 basis points on day

Dollar nudges up, UK pound near 14-month highs ahead of BoE decision

• Dollar nudges up, UK pound near 14-month highs ahead of BoE decision

UK data - Rightmove House Prices for June 0.0% m/m (prior + 1.8%)