GBP’s Game Of Thrones
Helen Rush | Oct 09, 2017 10:06AM ET
Today is good opportunity to take advantage of thin liquidity amid holidays in USA and Canada.
GBP finally received a much-needed respite. Last week the pair lost almost 3 figures and tested 1.30 handle. There was a reason to worry – Theresa May’s unstable political position.
It seems that today the clouds dissipated for the prime minister, as the jitters on a potential cabinet reshuffle appeared. PM May can now brush off Boris Johnson's posturing.
That’s sad, but at least better than uncertainty. Most of all, inflation in the UK has been growing since the end of 2016, from zero to nearly 3%.
Finally, there is a good possibility of a rate hike from Bank of England. So, sterling may see a light at the end of the tunnel.
But, let’s wait for today’s Theresa May speech. Any positive commentaries from the PM will help the pair test the September 8 highs at 1.3220. If May disappoints the markets, investors will send GBP to test the critical support area 1.3000.
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