DislikedToday's GDP small positive result should not drive the cable price higher because it represent the past 3 months-not the future, while the other weak fundamentals more important for the future of the interest rate. Beside that, Cable priced very high at this minute.
I think, Cable must go down to 0490 at least for now.Ignored
The governments seem to think that inflation is the only fundamental worth responding to - using interest rates..
If everyone was losing their jobs and houses and business was suffering - but inflation was romping upwards (slumpflation) - they would still raise rates- we know that from the past.
So should we only take account of ONE fundamental - inflation ?
UK has inflation - interest rates WILL go up and to heck with all the other factors - and exchange rates right now care ONLY about interest rate differentials
Surely it can't be that easy to predict forex ?