The British pound came under buying pressure at times this week on improved economic sentiment, despite UK CPI indicating accelerating inflation. However, the pound's return to its pre-July currency intervention level has heightened concerns about further intervention, and the range for this week is expected to be ¥214.00-¥220.00.
UK CPI released this week showed that inflation had accelerated, providing a buying catalyst for the pound. Improved economic sentiment was also reported, and trading is expected to continue to reflect expectations for further tightening by the Bank of England. Assessments that concerns about worsening fiscal conditions have eased are also supporting pound buying.
However, the pound has recovered to its pre-July currency intervention level, and concerns about the possibility of further intervention remain strong. Traders are expected to remain alert to this intervention risk during the week. The forecast range for this week is ¥214.00-¥220.00.