GBP: Better than forecast CPI boost BoE easing hopes and lift Gilts – Scotiabank

FXStreet Insights Team FXStreet

UK markets breathed a sigh of relief after this morning’s UK inflation data, Scotiabank's Chief FX Strategist Shaun Osborne notes.

GBP is trading steady on the day

"December CPI rose 0.3% in the month and 2.5% over the year, a little below forecasts. Core and Services price measures slowed more significantly, boosting expectations that the BoE will proceed with rate cuts."

"The data brings some relief to the Gilts market after the recent turmoil. 10Y yields have eased 8bps on the day. Swaps reflect 22bps of easing priced in for the February MPC versus 16bps late yesterday. The data is a double-edged sword for the pound which has been choppy but is trading little changed on the day."

"The Pound Sterling (GBP) is not making a lot of progress but the heavy losses seen in the market last week have been halted. Monday and Tuesday’s sessions suggested firm demand on dips below 1.22 and a similar pattern is evident so far today. This may set the pound up for a minor squeeze higher. Resistance is 1.2255. Support is 1.2175."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD looks apathetic around 1.1770

EUR/USD comes under renewed pressure on Tuesday, deflating below the 1.1800 support and reversing two consecutive days of gains. The pair’s decline follows the persistent move higher in the US Dollar, as trade uncertainty dominates the sentiment ahead of President Trump’s SOTU speech.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Ripple’s DeFi shift in focus: Navigating XRPL EVM sidechain growth, XRPFi migration and liquidity

Ripple (XRP) has continued to trade under pressure, extending its decline by approximately 63% from the record high of $3.66 in July. The remittance token is trading above support at $1.35, while its upside appears limited by key supply zones, starting with $1.40, at the time of writing on Tuesday.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.