The British Pound (GBP) has held the 1.8050 (0.5540) level late Friday and into this week’s open pushing to 1.8200 (0.5495) briefly early Tuesday, the Feb 2022 low against the Australian Dollar. New UK treasury boss Jeremy Hunt said Monday he was reversing nearly all of the Govt’s planned tax cuts and would pull back on the energy price cap subsidy as he tries to reassure markets the backbone of the economic finances remains intact. Growing doubts over whether new PM Truss will survive in govt much longer after much carnage of late remains up for debate. Looking ahead we have UK CPI y/y Wednesday predicted to rise from 9.9% to 10.0%. This should rally the GBP.
Current Level: 0.5540 (1.8050)
Resistance: 0.5880 (1.8200)
Support: 0.5500 (1.7800)
Last Weeks Range: 0.4935-0.5113 (1.9557-2.0263)