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…
Mostly third tier money supply numbers from the UK meant that GBPUSD was centered on US issues as with the rest of the majors. Signs of more inflation pressures in the US quickly saw the greenback gaining ground across the board particularly with another FOMC meeting today in the US where the absence of rate…
The British Pound has remained buoyant at the start of the week pushing past prior highs on the lack of fresh perspective. This said the fundamental picture of the UK is little change inflation is easing and manufacturing on a contraction. For today potential driver for the pair will be US Employment Cost Index and…
Cable has been a major beneficiary of dollars retreat the past week given a strong performance of its services sector. But with manufacturing still in contraction and inflation pressures easing faster vis-a-vis the US, policy risks still point at the BoE possibly being the first to ease among the major central banks. Ahead we have…
The UK’s flat Retail Sales figures Friday saw bears regaining the upper hand as GBPUSD dropped under the weeks lows and saw a further follow through decline at the open Monday. Ahead we have data for both side as Flash Manufacturing and Services PMI is set for release. Consensus forecast for the UK has us…
Despite a repeat of Tuesday’s diverging policy direction talk, Cable managed to see firmer ground Wednesday following the release of the UK’s latest inflation report. Annualized CPI turned out at 3.2% against a 3.1% consensus forecast contrasting with BoE Governor Andrew Bailey’s forecast of a ‘sharp drop’ in the coming months. Resistance Support Daily charts…