GBPUSD – Flat
GBPUSD trading plan:
The Bank of England will be far more aggressive in policy tightening than previously thought as it battles to contain stubbornly-high inflation running at the joint-highest rate among advanced economies. Forty-eight of the 50 economists surveyed expected a 25-basis point lift next month, with two expecting a bigger 50 basis point increase. Meanwhile, 27 of 47 saw Bank Rate at 5.00% or higher by end-September. That marks a sharp upturn from a poll published May 5 which said the BoE would be done after it raised rates to 4.50% on May 11. All but three of 39 common contributors to this poll and the last one lifted their year-end prediction. The Bank needs to push back against the risk high inflation proves unexpectedly sticky, and may need to raise interest rates further, Monetary Policy Committee member Jonathan Haskel said last week.
Investment idea: buy 1.2409 and take profit 1.2480.
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