BOE Mann: Research points to higher inflation from climate shocks, policies and spillovers

<p>BOE Mann:</p><ul><li>Research points to increased inflation, increased inflation persistence, and increased inflation volatility associated with climate shocks, policies, and spillovers</li><li>Carbon price shocks lead to more inflation persistence and then oil price shocks</li><li>Redistribution of revenues from carbon taxes or emission certificate auctions have economic effects of direct interest to central banks</li></ul><p>Generalize comments:</p><p>The GBPUSD is trading near session highs and is retesting it's 100/200 hour moving averages near 1.2258/1.22599. Move above those levels should tilt the bias more to the upside technically. The GBPUSD up-and-down price range today is 47 pips which is much less than the 88 PIP average over the last 22 trading days. So there is room to roam on a break to new session highs and above the aforementioned moving averages.</p>

This article was written by Greg Michalowski at www.forexlive.com.