GBP/USD: good news already priced in - Scotiabank

By FXstreet.com | July 23, 2014 AAA

FXStreet (Córdoba) - Camilla Sutton, analyst at Scotiabank commented that GBP weakness that followed BoE minutes highlights how much good news is already priced into GBP and one of the major risk factors for the currency



Key Quotes



“GBP is soft, having broken through support and now trading to a July low. Support from here lies first at the psychological 1.7000 followed by the June 25th low of 1.6953”.



“The BoE minutes were the core focus, interpreted as less hawkish than expected by markets but still supporting our core view that the BoE is eager to enter its hiking cycle but that rate increases will prove gradual”.



“The market reaction (of GBP weakness) highlights how much good news is already priced into GBP and one of the major risk factors for the currency”.



“We hold a Q314 forecast of 1.72 and a Q414 target of 1.70”.



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