GBP soft and underperforming in quiet trade – Scotiabank
|Pound Sterling (GBP) is soft, down a modest 0.2% vs. the US Dollar (USD) but underperforming all of the G10 currencies in relatively quiet trade, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.
Markets are waiting for CPI Wednesday & BoE Thursday
"Market participants are waiting on Wednesday’s CPI and Thursday’s BoE. Inflation is expected to show a softening trend while still remaining in the mid/lower-3% area on both headline and core. For the BoE, policymakers are widely expected to leave rates unchanged while communicating a neutral/dovish bias. Markets are currently pricing one 25bpt hike by September and a cumulative 50bpts by December, adding about 5pbts of easing to the latter over the past month."
"GBP/USD’s trend remains bullish, given its recent push to fresh multi-year highs above 1.36. Bullish momentum is fading somewhat, however the longer-term trend is clearly defined by the sequence of higher lows and higher highs observed following the mid-January bottom. There are no major longer-term resistance levels ahead of 1.3750. The latest range is defined by support below 1.3480 and resistance above 1.3620. "
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.