On the daily chart the pair seems to be finding support at the March uptrend at 1.6793, with the November uptrend below at 1.6700

Chris Weston

Pepperstone

On the daily chart the pair seems to be finding support at the March uptrend at 1.6793, with the November uptrend below at 1.6700. The bulls will be hoping this trend support holds. It's a big night for sterling and the gilt market as well, with employment data due at 18:30 and the UK inflation hearing an hour later. Importantly wages are increasing and some of the slack the BoE spoke about earlier in the year is abating. There could be a good chance the BoE subsequently speak more positively on the economy tonight and this could reinforce expectations that the BoE could lift rates in Q1. It's worth noting that the market (I look at short sterling futures) are pricing in a full 50 basis point hike by March, which will naturally divide the market in itself.


Chris Weston
Head of Research
Pepperstone

Highly accomplished financial markets professional, with experience at a number of top-tier global institutions on both the buy and sell-side. A natural communicator with a strong ability to analyse macro-economic trends, capital flows and market...

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