Yesterday the market was calm. The pair GBP/USD was traded in a narrow range.
However, a member of the Monetary Policy Committee of the Bank of England expressed his doubts in the August monetary policy change. But investors did not react to it.
Now the waiting for the Fed raising rates has a far greater impact on the market. The probability of the December is 45.5%.
Today the UK will present data on the consumer price index. It’s expected an increase from 0.3% to 0.4%, the core CPI is expected from 1.2% to 1.3%. The producer prices are expected to increase by 0.1%.
The US is to publish data on the number of housing starts in June which may reach 1.17 million against 1.16 million in May, the number of buildings permits is projected at 1.15 million against 1.14 million previously.
We expect the pair GBP/USD near 1.3100.
How to trade
We would buy put options if the pair GBP/USD falls below 1.32.
Target price: 1.32
Expiry time: 20:00 GMT