Sterling Digest, April 18 2012: when fundies turn hawkish

• Posted by faithmight
• on April 18th, 2012

Sterling comes alive this week after core UK CPI ticked higher-than-expected yesterday and a known BoE dove turns hawkish today. While economic data is important and moves the currency, the 2 most important fundamental pieces to watch concerning sterling are inflation and the Bank of England’s reaction to it. This week, both turned hawkish. If this becomes a trend, we could see sterling strength remain with a $GBPUSD that is above 1.60 and a $EURGBP at 0.80.

• Eurozone crisis live: Portugal admits it may need more help (The Guardian) [live blogging insights on UK employment and BoE minutes]
• Canadian approached for top Bank of England job (FT) [of course, BoE completely denies it]
• Deal quickly with your debt: Mark Carney’s serious now (The Globe and Mail)
• BOJ Policy Stance Confuses Investors, Ex-Board Member Says (Bloomberg)
• GBPCHF 4HR (yfrog)
• GBPUSD Update (50′s Blog)
• GBP/AUD At Fibonacci Launching Pad (FX360)
• EUR/GBP Weekly: major support in range (ChartTrader)

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