The inflation pressures | 10 January 2023

GBPUSD trading plan:

Bank of England Chief Economist Huw Pill said that Britain risked persistent inflation pressures from a tight labour market, even if natural gas prices stabilise or fall. "The distinctive context that prevails in the UK – of higher natural gas prices with a tight labour market, adverse labour supply developments and goods market bottlenecks – creates the potential for inflation to prove more persistent," Pill said. The Bank of England raised its main interest rate to 3.5% in December, up from 0.1% a year before, and financial markets expect the central bank to raise rates again to 4% at its next policy announcement on Feb. 2.

Investment idea: buy 1.2130 and take profit 1.2210.