UK PM, British Prime Minister Rishi Sunak stated on Tuesday. That UK inflation is proving to be more persistent than predicted. But that the correct instruments are being used to combat it.
“Whether it’s monetary policy, responsible fiscal policy, or supply side reform. That’s the right toolkit that you need to deploy in order to bring inflation down,” Sunak told Reuters.
UK PM statement reaction on market
Following these comments, the GBPUSD pair extended its recovery. And was last seen trading at 1.2735, up 0.35% on the day.
Cable climbs more on Tuesday, indicating a likely continuation of the positive trend. After Monday’s long-legged Doji warned of hesitation and a possible recovery stop.
Fresh bulls broke over a critical barrier at 1.2719 giving an early bullish signal. That will need confer on a closure above this level.
Bulls maintain control of the daily chart, with the momentum indicator in positive territory. And returning to bullish configuration, with targets at 1.2750/87 (Fibo 61.8% and 76.4%, respectively), with stronger acceleration potentially challenging key barriers at 1.2848 (2023 high of June 16) and 1.2881 (200WMA).
Caution is still needed because next week’s daily cloud twist (1.2460) might be magnetic, particularly if recovery fails to clear the 1.2719 pivot.
Markets anticipate more cues from the announcement of on Wednesday. UK PMI data and Fed minutes are due on Thursday (ADP) and Friday (NFP), respectively. Ahead of crucial US labor statistics for June, which are due on Thursday (ADP) and Friday (NFP).
