ANALYSIS
NQ100 Finds Support from PPIApr 14
Pound is under pressure
Bank of England increased policy rate by 25 bps to 1 percent in line with the forecasts. In addition, the Bank noted that inflation will decline more slowly compared to other countries, increasing its year-end forecast from 5.75 to 10.25. It also noted that economic activity will certainly slowdown in 18 months, putting strong pressure on pound. Technically, descending channel movement continues and the pair may decline to 1.2275, the lowest level of the last 2 years. In possible rises, on the other hand, 1.2565 – 1.2655 will be the strong resistance zone.
