ICICI Direct's currency report on GBPINR
The pound appreciated by 0.16% yesterday mainly on the back of weakness in dollar and as Bank of England raised its benchmark rate by 50 bps to 1.75% in an attempt to curb inflation. However, sharp upside was capped as BoE warned that Britain will fall into recession that would last for five consecutive quarters. It also added that inflation would continue to rise well above its current four decade high and household income would fall sharply • The pound is expected to trade with a negative bias on a series of disappointing economic data from UK. Further, the pound may slip on pessimistic outlook on economy. BoE warned that the UK economy will fall into recession staring in Q4 2022 and extend through next year. While inflation was now likely to peak at 13.3% in October. Market anticipates that BoE’s recession warning may limit rate hikes in future. GBPINR (August) is expected to trade in a range of 96.00-96.75.
|GBPINR Aug futures contract (NSE)|
|Sell GBPINR in the range of 96.48-96.50|
|Target: 96.00||Stoploss: 96.75|
|Support: 96.25/96.00||Resistance: 96.75/97.00|
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