GBP/USD could test last week’s high of 1.2345 – SocGen
|Sterling stays within touching distance of 1.2300 against the Dollar. The GBP/USD pair could test resistance at 1.2345, in the view of analysts at Société Générale.
50 bps priced in for Thursday
“The high of 1.2345 last week is first resistance if equities come through US CPI, Fed, ECB and BoE unscathed. The 30-day correlation with the S&P is 0.6.”
“A dovish split on the MPC at the meeting on Thursday could also backfire for Sterling via higher EUR/GBP. Some members could prefer 75 bps, others 50 bps, others 25 bps and some no change. We are in line with consensus for 50 bps to 3.50%.”
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.