FXStreet (Córdoba) - Pablo Piovano, editor at FXStreet, commented that waning expectations of a rate hike plus speculative positioning keep taking a toll on the sterling, dragging GBP/USD from multi-year peaks to levels sub-1.6800. In this line, tomorrow's Quarterly Inflation Report by the BoE will take special attention as investors look for any clue regarding the timing of the rate hike.
“In light of tomorrow’s Quarterly Inflation Report by the BoE, traders will look for any clue regarding the timing of the rate hike, and investors will scrutinize anything in connection with that ‘slack’ that prevent the BoE to be the first of the G4 central banks to hike rates”.
“In the meantime, waning expectations of a rate hike plus speculative positioning keep taking a toll on the sterling, dragging Cable from multi-year peaks in levels just shy of 1.7200 the figure to this week’s lows in levels last seen in early June, around the mid-1.6700s”.
“The renewed USD strength has been collaborating with the downside as well, bolstered by a firmer momentum in the US economy”.
“Levels-wise, the initial hurdle remains 1.6800 ahead of August top at 1.6890; the interim support lines up at 1.6750 followed by June low at 1.6698”.