Sterling has risen as resilient inflation puts rate-cuts in doubt. Note, however, that the Bank of England is not alone in this dilemma
EUR/USD IG Client Sentiment: Our data shows traders are now net-long EUR/USD for the first time since May 09, 2024 when EUR/USD traded near 1.08.IG Client Sentiment Update: Our data shows the vast majority of traders in Oil - US Crude are long at 82.76%, while traders in EUR...May was the British Pound’s strongest month against the United States Dollar this year as uncertainty as to when the Bank of England might cut interest rates keeps a solid floor under Sterling.
The week is not full of likely scheduled Sterling trading cues beyond the ECB decision and the press conference to follow it. There’s no first-tier UK data on tap and the BoE won’t be making its own interest rate call until June 20. With that in mind, it seems likely that the Pound will remain in a holding pattern, so it’s a neutral call this week.
The Pound will need to build a durable base above that if it’s going to push on further to the significant, seven-month peak of March at 1.28893. The 200-day moving average for GBP/USD remains quite a long way below the current market, way down at 1.25379, but well within the current broad range. IG’s own data finds trading sentiment broadly balanced, with a modest bearish bias.
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