FXStreet (Barcelona) – Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, notes that GBP/USD is seen gaining strength after the dual impact of steadying BoE & softening Fed view.
Key Quotes
“GBP is up 0.6%, rising to levels last seen in November, supported by relative policy expectations—the result of firming BoE expectations set against a softened Fed outlook. BoE MPC member Forbes’ speech on Wednesday underscored the influence of external factors in pulling down inflation, highlighting the stability of domestically generated inflation (DGI) over the past 18 months. Domestic retail sales data have been stronger than expected, however their impact on GBP was relatively muted.”
“GBPUSD short-term technicals: bullish—RSI has broken into overbought territory above 70 and GBP has risen above the 50% retracement level of the July 2014-April 2015 decline. Focus turns to the 61.8% Fibo level at 1.6189.”
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