5 Aug 2015
GBP/USD robust ahead of BoE - Scotiabank
FXStreet (Guatemala) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank explained that GBP/USD was rising off support at the 50 day MA (1.5563), its momentum indicators hinting to a modestly bullish bias. Trend indicators are muted, and we await a break of the recent three-week range between 1.5467 and 1.5690.
Key Quotes:
"GBP is rising modestly vs. the USD and outperforming all of the G10 despite softer domestic PMI data, with strength driven by flows out of Europe as market participants look to relative policy ahead of Thursday’s BoE events—including the policy decision, concurrent release of minutes as well as the quarterly Inflation Report.
The Bank Rate is widely expected to remain on hold at 0.5%, with focus centered on MPC members’ voting as well as the assessment of ‘inflation probabilities’ in light of recent concerns about the disinflationary impact of exchange rate strength."
Key Quotes:
"GBP is rising modestly vs. the USD and outperforming all of the G10 despite softer domestic PMI data, with strength driven by flows out of Europe as market participants look to relative policy ahead of Thursday’s BoE events—including the policy decision, concurrent release of minutes as well as the quarterly Inflation Report.
The Bank Rate is widely expected to remain on hold at 0.5%, with focus centered on MPC members’ voting as well as the assessment of ‘inflation probabilities’ in light of recent concerns about the disinflationary impact of exchange rate strength."