Traders step up odds of BOE rate cut for next month

That compares with ~62% odds before we got the softer UK CPI report here. Looking out to the entirety of this year, traders are pricing in ~49 bps of rate cuts in total. That is just a slight step down from what was priced in going into the turn of the year.

The pound reaction hasn’t been too straightforward though. It lost some ground earlier with cable slipping to a low of 1.2155 but dip buyers are making a bit of a stand with price now rising back up to 1.2225 currently and testing its 100-hour moving average of 1.2223.

This article was written by Justin Low at www.forexlive.com.