Nossos melhores spreads e condições

Sterling is a moderate underperformer on the session as markets move to reduce exposure ahead of this week’s key UK event risk. Economists at Scotiabank analyze GBP outlook.
UK CPI data for May are released tomorrow (a firm MoM gain for the headline rate of inflation and little change in the core rate, which was 6.8% YoY in April are expected). This will tee up a BoE rate hike Thursday; a 25 bps hike is expected, with slightly more (28 bps) priced in to swaps.
Losses look corrective but the solid GBP gains last week leave some room for a consolidation to develop in the short run below minor support at 1.2750/60 – potentially towards support at 1.2700/25 intraday.
Resistance is 1.2800/10.