UK CPI data that came earlier dampened already low BoE easing expectations for the upcoming meeting, while the Pound Sterling (GPB) pushed higher on the data to retest yesterday’s highs in the low 1.32s, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

Core and services CPI gain, dousing BoE bets

“UK CPI data were in line with expectations. The data dampened already low BoE easing expectations for tomorrow’s meeting even further. Sterling pushed higher on the data to retest yesterday’s highs in the low 1.32s.”

“A solid intraday rebound from the mid 1.31 zone puts a positive spin on short-term GBP price action but gains have stalled around 1.3225/30, near yesterday’s high. Broader price patterns and solidly bullish trend signals suggest a bias towards GBP gains and firm support on minor dips.”

“Resistance is 1.3255/65 and 1.3330. Support is 1.3150.”