GBP: Markets see low risk of BoE ease this week – Scotiabank

FXStreet Insights Team FXStreet

The Pound Sterling (GBP) is a moderate outperformer on the session, helped by the prospect of the BoE taking a pass at this week’s rate decision and holding off on easing rates again until later in the year, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP outperforms

“Swaps reflect a little more than 25% risk of a cut this week. CPI data tomorrow are expected to underscore BoE patience; headline CPI is expected to remain steady at 2.2% Y/Y but core prices and services inflation especially are expected to remain elevated. September’s Rightmove House Price index confirmed recent signs of a strength in the UK housing market, gaining 1.2% in the year.”

“GBP gains on the session are pushing up against consolidation resistance in the low/mid-1.32s. The chart patterns are not as “clean” as the signals on the EUR’s daily chart but a GBPUSD push above 1.3230/40 should signal scope for additional strength.”

“Like the EUR, however, the GBP is getting some solid technical tailwinds from bullishly-aligned trend momentum signals on the intraday, daily and weekly charts once again. This should limit scope for GBP dips (to the mid/upper 1.31s now) and keep the bull trend grinding on. Resistance is 1.3265 and (major) 1.3330.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.