FXStreet (Łódź) - Economist and Lead European Editor Pablo Piovano points out that tension is rising among GBP traders ahead of the release of BoE's Quarterly Inflation Report due out on Wednesday.
"Traders will look for any clue regarding the timing of the rate hike, and investors will scrutinize anything in connection with that ‘slack’ that prevent the BoE to be the first of the G4 central banks to hike rates."
"In the meantime, waning expectations of a rate hike plus speculative positioning keep taking a toll on the sterling, dragging Cable from multi-year peaks in levels just shy of 1.7200 the figure to this week’s lows in levels last seen in early June, around the mid-1.6700s."
"The renewed USD strength has been collaborating with the downside as well, bolstered by a firmer momentum in the US economy."
"Levels-wise, the initial hurdle remains 1.6800 ahead of August top at 1.6890; the interim support lines up at 1.6750 followed by June low at 1.6698."