“The Cable appreciated to a weekly high (1.6334) on Wednesday morning after it was declared that two members of the Monetary Policy Committee (MPC) voted for a rate increase last month. However, buying pressure was short lived with the pair quickly pulling back to trade around 1.6285 at the time of writing. The lack of buying pressure in the Cable so far this morning exemplifies the nervousness of investors ahead of Thursday’s Scottish referendum.
“I am still expecting a “NO” vote tomorrow and after analyzing the UK economic data in more detail, I am now forecasting the GBPUSD to head towards the 1.67 level, as long as “NO” is the outcome. Two members of the MPC voting for a BoE rate hike for the second successive month clearly shows a divergence of opinion is emerging within the BoE. It is also worth noting that the UK unemployment rate was also confirmed as having declined to 6.2% this morning (BoE has 6% unemployment rate target), and a rate rise is edging closer to reality.
“Although all investor attention is clearly focused on Scotland at the moment, it shouldn’t be dismissed that Carney and the BoE clearly signaled last week that an interest rate hike was likely for around Spring 2015. Previously, investors had become frustrated by receiving mixed signals from the Bank regarding the timing of a rate hike and now we have finally received what appears to be a likely timeframe, I am expecting investor attraction to return for the GBP. ”
Comparebroker is a comparison site and we spend hundreds of hours to keep the information up to date. However, users are advised to do their own due diligence and nothing can be perceived any advise. The content on the website is purely for education purposes only
Recommended Content
Editors’ Picks
GBP/USD stays below 1.2450 after UK employment data
GBP/USD trades marginally lower on the day below 1.2450 in the early European session on Tuesday. The data from the UK showed that the ILO Unemployment Rate in February rose to 4.2% from 4%, weighing on Pound Sterling.
EUR/USD steadies above 1.0600, awaits German ZEW and Powell speech
EUR/USD is holding above 1.0600 in the European morning on Tuesday, having hit fresh five-month lows. The pair draws support from sluggish US Treasury bond yields but the rebound appears capped amid a stronger US Dollar and risk-aversion. Germany's ZEW survey and Powell awaited.
Gold price holds steady below $2,400 mark, bullish potential seems intact
Gold price oscillates in a narrow band on Tuesday and remains close to the all-time peak. The worsening Middle East crisis weighs on investors’ sentiment and benefits the metal. Reduced Fed rate cut bets lift the USD to a fresh YTD top and cap gains for the XAU/USD.
SOL primed for a breakout as it completes a rounding bottom pattern
Solana price has conformed to the broader market crash, following in the steps of Bitcoin price that remains in the red below the $65,000 threshold. For SOL, however, the sensational altcoin could have a big move in store.
Key economic and earnings releases to watch
The market’s focus may be on geopolitical issues at the start of this week, but there is a large amount of economic data and more earnings releases to digest in the coming days.