6 Jun 2014
GBP/USD bearish/neutral outlook - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained GBP is ending the week having made gains and broken out of its tight range.
Key Quotes:
Data today included falling inflation expectations, rising interest rake hike expectations and a widening of the trade deficit; however as the market continues to digest ECB policy and anticipates nonfarm there was limited GBP reaction to the domestic side."
"GBP/USD short‐term technicals: bearish but rapidly shifting towards a more neutral outlook. GBP’s ability to break through the topside of its range is encouraging for GBP bulls; however a significant catalyst, like a hawkish turn at the BoE, would be needed to see GBP break above its ytd high of 1.6996."
Key Quotes:
Data today included falling inflation expectations, rising interest rake hike expectations and a widening of the trade deficit; however as the market continues to digest ECB policy and anticipates nonfarm there was limited GBP reaction to the domestic side."
"GBP/USD short‐term technicals: bearish but rapidly shifting towards a more neutral outlook. GBP’s ability to break through the topside of its range is encouraging for GBP bulls; however a significant catalyst, like a hawkish turn at the BoE, would be needed to see GBP break above its ytd high of 1.6996."