Welcome Guest:
Sign Up
Derived real-time data in partnership with:
Thomson Reuters
Feb 12 - 02:36 PM
GBP/USD - COMMENT-Sterling Faces CPI Diversion Amid Brexit Vigil
First appeared on eFXplus on Feb 12 - 12:40 PM

Inflation might be a key focus for the BoE, as well as sterling traders this week, but it will be hard pressed to take the focus off Brexit given the recent direction of news flow.
Carney has recently commented the most important decisions affecting UK households will be on Brexit, not rates, and cable has come under pressure as uncertainty over the terms of the UK's divorce weighs on the outlook for the economy.
Comments by Nigel Farage added to GBP weakness saying that "Brexit betrayal" would thrust Britain into constitutional crisis.
This followed worries over the possibility of a post-Brexit transition raised on Friday but EU negotiator Barnier.
The pound currently sits near 1.3810, just above Friday's post-Barnier low of 1.3767.
A close below 1.3747, the 38.2% Fib of the 1.2779-1.4346 rise, would exposes a series of lows, notably 1.3457 on Jan 10 and 1.3040 on Nov 3 on the way to 1.2774, which was the Aug 24 low.
See also .
With CPI not expected to show any wild deviations, Friday's speech by PM May needs to allay fears of a hard Brexit or GBP risks a precipitous fall that could stoke inflation.

Chart: Click here

Farage warns "Brexit betrayal" would thrust Britain into crisis nL8N1Q24GJ

EU's Barnier warns Britain post-Brexit transition "not a given" nL8N1PZ453

BoE rate outlook could be tested by Brexit - McCafferty nL9N1PV007

Source:
Thomson Reuters IFR Markets
!