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22 Aug 2014
Market removing interest rate pricing in GBP - FXStreet
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank suggests, for now, the market focus is on removing some of the more aggressive interest rate pricing.
Key quotes:
"Diverging internal views hints at a BoE who is moving towards interest rate hikes. GBP looks vulnerable to test down to the March low of 1.6460; but we would expect some retracement after that as the BoE is likely to be the first of the G4 to hike rates."
"GBP/USD short‐term technicals: bearish—with no warnings on the daily or weekly charts yet. Accordingly the nearterm risk is further downside; with support fairly limited until reaching the March low of 1.6460."
Key quotes:
"Diverging internal views hints at a BoE who is moving towards interest rate hikes. GBP looks vulnerable to test down to the March low of 1.6460; but we would expect some retracement after that as the BoE is likely to be the first of the G4 to hike rates."
"GBP/USD short‐term technicals: bearish—with no warnings on the daily or weekly charts yet. Accordingly the nearterm risk is further downside; with support fairly limited until reaching the March low of 1.6460."