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"That greater sensitivity to short-term inflation news could suggest that expectations are becoming less anchored than they have been, and that markets perceive that the MPC has become more tolerant of inflation."
- Members of the bank's rate-setting committee (based on The Economic Times)
Pair's Outlook
Short term technicals point at further appreciation of the pair. However, we should pay attention the sell signals given by the RSI and the Stochastic indicators. Together with the facts that pair has recently reached new high and traders will need some time to restrategize their positions; and the pressure coming from resistance at 1.578 it seems that pair should be somewhat range bound for some time.
Traders' Sentiment
Additional 4% of traders became bearish towards the pair during the weekend. Bears now hold 74% of all open positions on the pair. Pending orders, however, do not give any sentiment indications as they are almost equally divided between the bears and the bulls.
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