Rising Oil Prices Revive Expectations of Bank of England Rate Hike

Brent price is at 107.88, nearly flat over 24 hours (0.06%) but trading above SMA20 and SMA50. Although RSI at 64.7 is approaching overbought territory, there is no confirmed reversal signal yet. MACD is positive and above the signal line, indicating short-term momentum remains bullish. The news highlights that rising oil prices create inflationary pressure, strengthening the likelihood of a BoE rate hike; while this is mixed for commodity demand, supply constraints and geopolitical risks could support prices. In the 1-3 day horizon, the upward trend may persist, but RSI approaching the overbought threshold suggests limited upside potential.

The rise in oil prices has reignited inflation pressures through energy costs, strengthening the possibility of an interest rate hike by the Bank of England. This situation could negatively affect global risk appetite and create selling pressure in stock markets. In oil-importing countries like Turkey, concerns over the current account deficit and inflation may increase, putting depreciation pressure on the Turkish lira. In the short term, market sentiment may remain cautious.

The rise in oil prices reviving the possibility of a Bank of England rate hike is mildly supportive news for GBP in the short term. However, the current technical picture is weak: RSI at 38 is near the seller zone, MACD is negative, and the price is below the SMA20/SMA50. Therefore, the impact of the news may be limited, and upward attempts could encounter selling in the 1.3520-1.3530 resistance zone. If there is a drop below 1.3480, the downward trend would strengthen. Overall, the news is positive, but due to technical weakness, I expect a cautious upward bias.