10 Feb 2014
Flash: Sterling too looks poised to trade higher in the days ahead - BBH
FXStreet (Barcelona) - Marc Chandler, Head of Currency Strategy at Brown Brothers Harriman notes that with the Bank of England's Quarterly Inflation Report likely to push back against ideas that with the 7.0% unemployment threshold near that the risk of an early rate hike have increased, sterling may under-perform the euro.
Key Quotes
“Technically, the euro looks to test the GBP0;8350 area, and maybe as high as GBP0.8400 over the slightly longer-term.“
“Against the dollar, sterling's technical tone is constructive, with the RSI turning up and the MACDs set to cross early in the week ahead. The immediate target is the $1.6430-60 area, where a number of technical levels converge. Initial support is pegged near $1.6350.”
Key Quotes
“Technically, the euro looks to test the GBP0;8350 area, and maybe as high as GBP0.8400 over the slightly longer-term.“
“Against the dollar, sterling's technical tone is constructive, with the RSI turning up and the MACDs set to cross early in the week ahead. The immediate target is the $1.6430-60 area, where a number of technical levels converge. Initial support is pegged near $1.6350.”