GBP/USD sticks to its neutral stance – Scotiabank

Eric Theoret, FX Strategist at Scotiabank, sees Cable extending its neutral outlook in the near term.

Key Quotes

“GBP is flat following the release of the Autumn Statement. GBP remains vulnerable in this environment and continues to trade erratically with a series of flash-style moves since the early October crash”.

“Hawkish BoE member Forbes has downplayed concerns about uncertainty and underscored its relatively muted impact on growth”.

“Yield spreads are showing signs of stabilization around extended levels and risk reversals suggest a grinding moderation in the premium for protection against GBP weakness”.

“GBP has yet to break out of its range from November 3rd, roughly bound between 1.23 and the upper 1.26s. The 50 day MA remains an important level of resistance and the 21 day MA is providing support”.

To learn more about this topic, check our video analysis: