Bank of England Pill: UK economic activity has been quite weak

  • UK economic activity has been quite weak
  • Supply side constraints are committing GDP growth
  • The pickup in GDP is not going to be dramatic
  • It is early days to say that inflation has been suppressed
  • Expects UK inflation to fall close to or even below its target
  • Rates would be restrictive even after cuts.
  • Not yet confident to reduce rates
  • Emphasize now is on when there is no evidence to cut rates, not live

The GBPUSD reached to – and through – the 38.2% retracement of the move up from the October 2023 low. That level comes in at 1.25245. The low price reached 1.25176. The price is back higher at 1.2538. On the top side, the 200-day moving average comes in at 1.25609.

See the earlier technical video on the GBPUSD:

This article was written by Greg Michalowski at www.forexlive.com. Source