The surge in UK inflation, rising back to 4% this week, will ensure the Bank of England remains hawkish in their monetary policy, for the early part of 2024. This will support the GBP and add to the weaker economic conditions, domestically. The interest rate differential may support a stronger pound although RBA actions may dimmish the differential.
Current Level: 0.5155
Support: 0.5150
Resistance: 0.5250
Last week’s range: 0.5155 – 0.5260