Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, shares that the core risk for GBP remains tomorrow’s BOE’s QIR report, with the pair expected to move higher as the market remains prepared for a downgrade to inflation outlook.
Key Quotes
“GBP is retracing higher, outperforming all the currencies, but is up just 0.3%. Fundamental data was relatively light today.”
“The core focus was on developments in EURGBP, which trended down to fresh seven-year lows, forcing ongoing EURGBP selling (and therefore supporting GBP).”
“Last Wednesday we had recommended a short EURGBP position at 0.7521 with a target of 0.7420, which we have now traded through. We still see downside risk for EURGBP and hold a year-end garget of 0.70.”
“The core near-term risk is tomorrow’s BoE Inflation Re-port (5:30am EST). The market is well prepared for a downgrade to the inflation outlook, suggesting that there is some upside GBP risk.”
“GBPUSD short-term technicals: bullish—all signals warn of upside risk. Accordingly we reiterate our short-term idea to move to a long GBP position on a break above the 50-day MA at 1.5354 with a target of at 1.5570 and a stop at 1.5279.”
Key Quotes
“GBP is retracing higher, outperforming all the currencies, but is up just 0.3%. Fundamental data was relatively light today.”
“The core focus was on developments in EURGBP, which trended down to fresh seven-year lows, forcing ongoing EURGBP selling (and therefore supporting GBP).”
“Last Wednesday we had recommended a short EURGBP position at 0.7521 with a target of 0.7420, which we have now traded through. We still see downside risk for EURGBP and hold a year-end garget of 0.70.”
“The core near-term risk is tomorrow’s BoE Inflation Re-port (5:30am EST). The market is well prepared for a downgrade to the inflation outlook, suggesting that there is some upside GBP risk.”
“GBPUSD short-term technicals: bullish—all signals warn of upside risk. Accordingly we reiterate our short-term idea to move to a long GBP position on a break above the 50-day MA at 1.5354 with a target of at 1.5570 and a stop at 1.5279.”
