Pound Sterling did something faintly absurd on Wednesday. Hours after data showed UK inflation cooling faster than anyone expected, and with the Bank of England (BoE) governor sounding notably dovish in an afternoon speech, the pound rallied anyway.
European Central Bank (ECB) policymaker and the head of Belgium's central bank, Pierre Wunsch, said during the European trading session on Wednesday that the central bank needs to act at some point, as “we are at the beginning of an inflation problem”.
The USD/CHF pair attracts some follow-through buyers for the second straight day and retests the three-week top during the early European session on Wednesday. Spot prices now look to build on over one-week-old uptrend further beyond the 0.7900 mark amid a bullish US Dollar (USD).