FXstreet.com (Barcelona) - According to Melinda Burgess, FX strategist at RBS: "GBP has shown surprising resilience since the BoE’s QE expansion. Rate spreads have shifted back in favour of GBP but correlations still show a stronger relationship with risk sentiment. With the G4 making moves to further support their economies, this may support wider risk appetite." Hence, Bernanke’s semi annual testimony this week is important. "A greater inclination towards QE3 can see GBP/USD squeeze higher, particularly if 1.5606 can be breached. Solutions to the Euro area crisis still remain unclear and EUR headwinds look to be re-building. Risks skewed to further EUR/GBP declines, although weak UK fundamentals argue against significant GBP gains." She said.
EUR/USD May 22 at 19:39 GMT
1.2847/51 (-0.45%)
H1.2999 L 1.2833
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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Any opinions, news, research, analyses, prices or other information contained on this story, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
