Forex. Pound/Dollar (GBP/USD) forecast for today.
The currency pair is at the price levels of the current week. In case of strong sales, we can expect support to reach 1.3573.
The yield of 10-year UK bonds is close to the maximum of January 2018, and is now at 1.2595%.
UK debt securities are not the only ones going in the direction of an uptrend. Germany's 10—year benchmark bonds traded above 0% for the first time since 2019, after inflation in that country was confirmed at 5.3% in December - the highest since the reunification boom more than 30 years ago.
At a meeting of the Eurogroup on Tuesday, Germany's new finance minister Christian Lindner warned of the need to strengthen fiscal stimulus in the Eurozone and reintroduce some more effective restrictions on government borrowing when the European Central Bank begins to reduce its support for the bond market.
Meanwhile, data from the country's Office of National Statistics showed that both basic and basic consumer prices rose by 0.5% in December, which is much higher than forecasts. This led to an increase in the annual consumer price index (CPI) to 4.2%, and the base annual consumer price index to 5.3%.
The end of the week will be marked by an increase in trading activity in currency pairs where there is a pound. The focus will be on the consumer price index, retail sales volume, the basic retail sales index and the consumer confidence index.