Bank of England Haskel is on the wire’s saying:
- Further increases in the bank rate cannot be ruled out.
- He prefers to lean against the risks of inflation momentum.
- Despite current difficult circumstances, embedded inflation would be worse.
- While some indicators suggest the labor market is loosening, he views it as still very tight in an absolute sense.
- Data shows little evidence of UK inflation being disproportionated due to firms raising prices
Meanwhile, the GBPUSD is extending to new session lows (despite the comments) after breaking below a key swing area between 1.2343 and 1.23603 in trading today (see red number circles on the 4-hour chart below). The next key downside target comes against the rising 100-day moving average currently at 1.22848. The price low just reach 1.23132.
GBPUSD falls to a new session low
In the video below from earlier today, I outlined that area and spoke to the 1.2360 level as a level that should attract sellers. That level did hold in the US session and the downside was restarted. Sellers who leaned against the 1.2360 level are benefiting from the decline.