A stronger than expected read in UK CPI at 2.3% against a 2.1% consensus from 3.2% previously saw Cable pop up. From pricing in a rate cut in June market has had to consider the possibility of none action leading to the move up that eventually faltered. News across the pond suggests the Fed will…
The British Pound saw a brief peak above 1.27094 against the Dollar before spending the rest of Monday in its earlier consolidation zone. We have little to watch out for as potential catalyst to drive Cable with mostly jaw boning from FOMC members and the BoE’s Andrew Bailey at 1700GMT. Next key data for the…
With yesterday’s US data, we may now have the BoE and the Fed vying for the dubious honor of cutting interest rates first, starting an easing cycle among the major Central Banks. Ahead we have little in the calendar that could potentially turn the current rally. With two more days of trading still, we see…
We were surprised by Cable’s ability to hold on to gains and the extent of yesterdays move given the lack of impetus. Ahead we have numbers from both the UK and the US though of immediate concern for us will be the Claimant Count Change data at 0600GMT as a strong read here and hints…
After initial responses to the 0-2-7 vote of the Bank of England’s Monetary Policy Committee saw Cable selling off, weakness in US numbers quickly turned things in GBPUSD’s favor last Thursday though we failed to see a follow through to the rally. At this point market is focused on the US CPI release Wednesday to…
The immediate response for the Bank of England’s vote to hold steady and clear shift to a dovish stance in the breakdown saw the British Pound losing ground only to see a big bounce on weakness in the US weekly claimant data. While the change in policy bias for the BoE is clear absent any…
Tuesday finally saw a clear rejection from the trend line following through on the long daily wicks for Friday and Monday. It appears traders may be getting out of longs prior to the Bank of England’s Policy Meeting at 1130GMT. Note that we risk the BoE signalling its readiness for cutting rates soon as inflation…
Prospects for the British Pound remains heavily weighed by the thought of a dovish Bank of England with an upcoming policy meeting on Thursday 11am GMT. Until then we have very little market moving economic data and as such expect limited ranges though keeping a bearish bias. Resistance Support The combination of long wicks, a…
Even more so that the Euro, the British Pound proved unable to hold on to its NFP driven spike in GBPUSD with a long wick underscoring its rejection from its trend line. As they were US numbers were not drastically weak to likely change the Fed’s stance more concerned with inflation pressures than generating jobs….
Lack of fresh perspective has kept Cable within recent ranges though fundamentals for the UK remains unchanged. While market was disappointed with the FOMC’s failure to signal a last rate hike Wednesday leading to GBPUSD’s bounce the concern in the UK is for the BoE to be ahead of the curve in cutting rates. While…
