19 Jan 2015
GBP/USD domestic events to kick in this week?
FXStreet (Guatemala) - GBP/USD is currently trading at 1.5124 with a high of 1.5182 and a low of 1.5116 -0.22% on the day.
GBP/USD has been reacting to global events more so than the specific domestic UK data of late, changing hands within the market volatility and cross flows, while markets continue to push back the timing of the BoE's first rate hike. However, analysts at Bank of America Merrill lynch explained with growth momentum slowing, near-term inflationary pressures waning and a General Election looming, they think the first half of the year will be a challenging one for GBP with one inevitable consequence.
For this week, it delivers a number of key domestic events for the major, including BoE minutes claimant count, retails sales for the UK, while outside of domestics, the ECB is taking the hotspot this on the 22nd and markets may be subject to volatility leading into and around the meeting. The ECB are widely expected to commence sovereign QE. Meanwhile, Sterling is firmly placed within the bearish channel but finding some temporary support ahead of the psychological 1.5000, while if / when broke, directly below comes the 1.4910/1.4813 long term Fibo and the 2013 low.
In respect of the upside, Karen Jones, chief analyst at Commerzbank, noted that the Elliot wave count on the intraday charts are suggesting that the correction terminated at 1.5300. "We are unable to rule out a deeper phase to test the downtrend at 1.5478, but while capped here our negative bias will remain entrenched."
GBP/USD has been reacting to global events more so than the specific domestic UK data of late, changing hands within the market volatility and cross flows, while markets continue to push back the timing of the BoE's first rate hike. However, analysts at Bank of America Merrill lynch explained with growth momentum slowing, near-term inflationary pressures waning and a General Election looming, they think the first half of the year will be a challenging one for GBP with one inevitable consequence.
For this week, it delivers a number of key domestic events for the major, including BoE minutes claimant count, retails sales for the UK, while outside of domestics, the ECB is taking the hotspot this on the 22nd and markets may be subject to volatility leading into and around the meeting. The ECB are widely expected to commence sovereign QE. Meanwhile, Sterling is firmly placed within the bearish channel but finding some temporary support ahead of the psychological 1.5000, while if / when broke, directly below comes the 1.4910/1.4813 long term Fibo and the 2013 low.
In respect of the upside, Karen Jones, chief analyst at Commerzbank, noted that the Elliot wave count on the intraday charts are suggesting that the correction terminated at 1.5300. "We are unable to rule out a deeper phase to test the downtrend at 1.5478, but while capped here our negative bias will remain entrenched."