Last week’s Cable chart is very comparable to the EURUSD chart, moving in range with some bullish momentum closing at 1.3758. This is due from the lack of many serious volume from the other side of the Atlantic, as well as from the economic data from the UK itself.
UK consumer price growth reduced from 3.2% to 3.1%, which is a positive signal for investors scared of global inflation. Nevertheless, the market has hardly moved to these figures. Inflation is certainly very important, but the country is echoing the direction already taken by Europe and the US, where it was followed by solid growth following a small decline.
The Uk’s Markit Business Activity Index (PMI) in the services sector, published on Friday, October 22, climbed from 55.4 to 58.0 instead of an expected decline. This didn’t help the GBP much. The dollar, with the help of Jerome Powell, who made a speech shortly before the markets closed, strengthened not only against the euro, but also against the British currency.
The general sentiment in the British pound favors some short-term upside looking at the 1.29 mark.
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