GBP/USD hammered to fresh five-year lows

FXStreet (Mumbai) – The appetite for risk got completely smashed over the last hours, keeping risk currencies such as the cable at five-year lows.

GBP/USD drops nearly 100-pips so far

The GBP/USD pair trades -0.49% to 1.4343, testing multi-year lows reached at 1.4339. The offered tone around GBP/USD keeps growing bigger as markets give-up higher yielding currencies, the GBP, in favour of safe-havens such as the yen amid global sell-off triggered by oil decline below $ 30 mark.

Moreover, Thursday’s dovish BOE minutes, which raised concerns over lower wage-price growth and inflation outlook, almost out-prices a BOE rate hike in H1 2016 and contributes partly to the recent sell-off in the cable.

Meanwhile, markets paid little attention to the BOE’s credit conditions survey published last hours, as focus remains on oil, stocks and US macro releases.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4400/09 (round number/ 1h 50-SMA), above which 1.4432/1.4453 (5-DMA/ 1h 100-SMA) would be tested. On the flip side, supports are seen at 1.4300-1.4230 (May 2010 levels)

The appetite for risk got completely smashed over the last hours, keeping risk currencies such as the cable at five-year lows.

(Market News Provided by FXstreet)