GBP/USD consolidates in Asia after unchanged close Fri as markets stabilize

Supported by better risk appetite as fears of a U.S. recession wane

Recovery capped by repricing of Fed rate expectations

50bps Sept Fed rate cut chances now at 49%, was nearly 100% early last week

But diverging Fed/ BOE rate expectations likely to limit GBP downside

Markets price in 103 bps of Fed cuts by Dec but only 45 bps of cuts by BOE

UK inflation, jobs & wages data, U.S. inflation data this week key for trend

Resistance 1.2800-10, 1.2850-60, support 1.2710-20, 1.2685

Fri range 1.27265-1.2773, Asia range1.27465-1.2760; Japan markets closed Mon

For more click on FXBUZ