GBP: UK data may boost Sterling amid short squeeze – ING

💡 DMK Insight

Sterling’s potential lift from upcoming jobs and CPI data is worth watching closely. If the November jobs report shows stronger-than-expected employment figures, it could fuel a short squeeze that traders have been anticipating since late November. This is critical as the market sentiment around the pound has been shaky, and any positive data could trigger a rally. Conversely, if the data disappoints, we might see a quick reversal, especially if traders are caught off guard. Keep an eye on the 1.20 resistance level; a break above could signal further upside. Also, the December CPI data will be pivotal—higher inflation could lead to speculation about interest rate hikes, which typically supports the pound. The flip side is that if the data comes in weak, it could exacerbate bearish sentiment, leading to a potential drop below key support levels. Traders should monitor these data releases closely, as they could set the tone for the pound’s movement in the coming weeks.