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Jul 28 - 03:55 PM

GBP/USD - Slide Short-Lived As Bulls Focus On Widening UK-US Rate Spreads

By Paul Spirgel  —  Jul 28 - 01:35 PM
  • GBP$ firm into NY close +0.6% at 1.2865, Friday range 1.2888-1.2767

  • Pair bounced off o/n Asia low 1.2767, gained momentum after US data

  • US core PCE and UMich hint inflation may ebb further, Fed hike cycle ending

  • U.S. yields lower across the curve as traders digest data ahead of Sep FOMC

  • Sterling regains some rates mojo as BoE looms nL1N39E1I6

  • BoE on Aug 3 in focus after Fed, ECB dovish 25bp hikes

  • Supt at 1.2854's 10-HMA, 1.2767 Friday low, 1.2725 10-Week MA

  • Res 1.2888 Friday high, 1.2909 10-DMA, 1.2995 Jul 27 high

  • EUR/GBP ending NY -0.15% at 0.8566, Fri range 0.8588-50; higher BoE rate path supports GBP gains

Source:
Refinitiv IFR Research/Market Commentary

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