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Forex pairs in this Article » GBP/USD (Edinburgh) -Renewed weakness surrounding the sterling is now dragging the GBP/USD to fresh intraday lows around 1.5330/35 after hitting session highs around 1.5390. Jane Foley, Senior Currency Strategist at Rabobank, remarks the important role of the greenback in the recent appreciation of the pair, although better UK fundamentals have also helped.

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“The bounce from the July low near USD1.48 to current levels was mostly due to the softer tone in the USD as the Federal Reserve’s message of policy accommodation seeped in”.

“Over the coming months the direction of the USD will remains key in determining the value of cable. However, sterling fundamentals have entered an interesting period and we expect them to offer the pound decent support”.

“The combination of a new BoE governor and early signs of economic recovery mean that UK fundamentals have entered into a fresh phase”.

“The combination of better UK data and the risk that USD strength could be delayed until late in the year suggests that for the time being cable remains a buy on dips. Resistance lies at GBP/USD1.5395/00. The convergence of the 100 and 200 day sma at GBP/USD 1.5276/91 is likely to offer support”.
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