GBP/USD extends gains towards 1.32

The latent yet steady positive reaction in the Pound to the latest UK inflation data has now seen the GBP/USD grind its way close to the 1.32 handle right now. The move higher is being assisted by consistent pressure on the EUR/GBP (as noted earlier) and some very steady buying off the European lows in the GBP/JPY. The FTSE 100 is no higher either and this all seems to endorse the view; that the BOE will not cut rates tomorrow. For what it is worth that is a view shared here. That is not to preclude the possibility that they might lower rates though. That said, it would make more sense for the BOE to wait for the UK budget, in order to better assess the need for further remedial action, if the feared savage tax hikes actually transpire. The GBP/USD is just now trading at 1.3199