Markets were relaxed Monday over the US holiday, The British Pound (GBP) remains in its recent range trading around the 0.5170 ( 1.9340) areas this morning. Momentum tracked ever so slightly with the GBP as risk currencies took a breather. Last week’s rise of 25 points to 1.25% by the Bank of England should continue to support the Pound heading into tomorrow’s UK CPI read which is predicted to rise from 9.0% to 9.1% y/y. One source expects inflation to tick above 10.0%. Retail Sales in the UK releases at the end of the week and should reflect a difficult period for consumers with the number predicted to be around -0.6%. A retest of 0.5090 (1.9650) the 3 months daily high, looks the pick for direction this week.
Current Level: 0.5163 (1.9368)
Resistance: 0.5230 (1.9630)
Support: 0.5095 (1.9630)
Last Weeks Range: 0.5126-0.5195 (1.9249-1.9508)