GBP/USD 1-minute chart
Cable jumped up to a high of 1.2802 but quickly fell back to pare all of the quick gains in a fall to 1.2765 currently. As mentioned earlier:
“Based on OIS pricing, a 25 bps rate hike is 100% priced in for this week and I don’t see that changing regardless of the data. What matters now more for the pound and UK rates is the terminal pricing. That is now seen at around 5.83%, which means there is a long way to go with the bank rate now at 4.50%.”
The data today doesn’t change the fact that there will be a 25 bps rate hike tomorrow and markets are also seeing at least four more 25 bps worth of rate hikes after this week.
Considering what is priced in, all that the data today has done is just serve to reaffirm that what has already been priced in is vindicated.