• Sterling surged to new 6-mo highs on soft U.S. CPI, dovish Fed hopes

• Eyes first 1.2300+ close since June that had crimped Dec gains

• Huge 22bp rise in 2-yr gilts-Tsy yields spreads underpins

• Also an initial risk-on surge in S&Ps, but was rejected by Dec's highs

• Key now are Fed statement, SEPs, dots and Chair Powell's Wed presser

• Fed already guiding a ramping down from 75bp rate hikes, data dependence

• Nov CPI shows progress toward inflation goals made for second month

• Pound hurdles are 55-WMA, 100% Fibo off 2022 base & May hi @1.2455/6.53/66

• Buying dips toward the rising 10-DMA has been a winner for weeks

For more click on FXBUZ