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Cable buyers

• GBP/USD is marginally higher on the day.
• The pair is aiming for a fourth straight day of gains, capitalising on a solid turnaround in mood this week. The plunge below 1.3400 has been scavenged, and buyers are now attempting to prolong the more favourable technical trend. The recent recovery has seen price push above the 100-day moving average (red line) @ 1.3512, which is a boost for buyers looking to establish the next step higher. The BOE and US non-farm payrolls are the two big risk events to keep an eye on for the pair in trading this week, which will make things a little more difficult before the weekend.
• In terms of the former, we will almost certainly see a rate rise tomorrow, but the main question will be how far ahead policymakers want to be in setting the next one. This will set the tone for the rest of the week for the pound.
• But, from a technical standpoint, as long as the price remains above the 100-day moving average, buyers will be in an excellent position to capitalise on the next move upward. There is some support from the 50.0 retracement level around 1.3553, but beyond that, there is a fair likelihood that the recovery will move towards the 200-day moving average.
• On the other hand, failing to maintain a break above the 100-day moving average will result in a significant reversal of the recent rally. As such, the near-term technicals will begin to re-enter the picture, with a focus on the major hourly moving averages, which are presently located at 1.3439-74.

Investment Moves During Inflation

• Obtain the peace of mind you require when investing. Inflation raises the cost of goods and services over time. In a high-inflationary climate, investors take precautions to ensure that their portfolios remain intact and to alleviate their fears about the impact of inflation.
• Investing in shares is possibly the simplest way to safeguard your wealth from the effects of inflation. For example, if a company’s costs are rising, it may simply raise prices to compensate. This boosts earnings and sales, which helps both the company and its investors. That is why sticking with equities is essential, since they are a strong inflation hedge and may complement an asset allocation plan.
• Furthermore, remaining in the equity market allows you to create higher returns and, as a result, boost your purchasing power.
• Floating-rate bond funds may provide provide the necessary inflation protection. These products may be used to tactically tilt a portfolio and can be useful during periods of high inflation because the interest rate on floating-rate bonds rises as prices rise due to inflation.
• Floating-rate bonds are frequently variable interest rate loans made by banks to businesses. In terms of credit quality, the loans are classified as senior debt. That is, if the company goes bankrupt, it will be placed ahead of other holdings, such as high yield, on the payback calendar. • Commodities are another asset class that may be tipped. When inflation is high, commodity prices typically move in the green.
• As a result, continuing with them will allow you to capitalise on the demand for the aforementioned assets. When it comes to investing in commodities, it’s all about diversification. A diversified commodities fund may help mitigate some of the hazards of such an investment, and a tilt, like floating-rate bond funds, is more than enough to combat inflation. Staying involved is perhaps the best move you can make to weather market swings. While it isn’t always a fun pastime, it is typically the proper thing to do.