BoE’s Dhingra
- We are already at high level of monetary policy restrictiveness
- Medium-term inflation pressures are easing.
- Food prices are taking up, but not seeing the same rise in import costs as before.
- UK consumption is unusually week in Europe given high savings rate.
- Consumption spending is not a driver of growth in Britain, unlike US or euros down.
- Levels of capacity utilization in UK also .2 week demand rather than supply problems.
- Everyone on MPC has a different definition of pace of rate cuts implied by gradual
- My definition of gradual rate cuts does not mean 25 basis points per quarter.
The GBPUSD is trading back above its 100 hour moving average at 1.2626, but below its 100 day moving average of 1.2655
The price moved above its 100 day moving average on Thursday and Friday and again today in reaching a new swing high at 1.2687.
The low price today moved back to test the broken 38.2% retracement of the move down from the September and a swing area between 1.2596 and 1.26147. That level comes in at 1.2607.