Bank of England's Bailey speaking
- Much of the rise inflation has to do with reopening after lockdowns.
- What we are concerned about is once we have increase inflation we want to stop becoming generalized
- Problem now is that what's pushing up inflation is not too much demand
- the risk is that we are going to get more bottlenecks especially for labor
- We would and will have to act with rates if we see evidence of higher inflation expectations feeding into wages
The Bank of England kept rates unchanged last week and did not shift any of the votes as well. The GBPUSD tumbled lower and reached a low for the week at 1.34236 on Friday before starting a rebound back higher.
Looking at the hourly chart, the price today moved back above its 100 hour moving average at 1.35637 but did stall right under its 38.2% retracement of the move down from the October 20 high. That retracement level comes in at 1.35803. The high price today reached 1.3579. The current price is trading at 1.35618. That's just below the 100 hour moving average level.
