6 Sep 2013
GBP/USD flirting with 1.5600
FXstreet.com (Edinburgh) -The sterling is trading almost unchanged on Friday, driving the GBP/USD to hover over 1.5590/1.5600 ahead of the release of significant data in the UK.
GBP/USD eyes on UK docket
A neutral BoE gave further impulse to the sterling in yesterday’s MPC meeting although those gains were rapidly erased by the pick up in the USD dollar on a dovish ECB and solid US data. Later on, Consumer Inflation Expectation, Industrial/Manufacturing Production and Trade Balance figures are due in the British economy, looking to add momentum to the solid recovery. The research team at TD Securities noted, “The better UK data trend continues to impress, and we have accordingly bumped up our GBP forecast. The BoE remains cautious on the outlook for the economy however, and continues to signal that rate hikes remain very distant and even tout the idea that QE remains an option if circumstances deteriorate. Overall, that message should contrast a less accommodative Fed, leaving us biased to the downside for GBP/USD from current levels”.
GBP/USD levels to consider
The pair is now up 0.03% at 1.5595 facing the next resistance at 1.5667 (high Sep.5) followed by 1.5718 (high Aug.21) and finally 1.5753 (high Jun.17). On the flip side, a breakdown of 1.5573 (low Sep.5) would aim for 1.5557 (MA10d) and then 1.5556 (low Sep.4).
GBP/USD eyes on UK docket
A neutral BoE gave further impulse to the sterling in yesterday’s MPC meeting although those gains were rapidly erased by the pick up in the USD dollar on a dovish ECB and solid US data. Later on, Consumer Inflation Expectation, Industrial/Manufacturing Production and Trade Balance figures are due in the British economy, looking to add momentum to the solid recovery. The research team at TD Securities noted, “The better UK data trend continues to impress, and we have accordingly bumped up our GBP forecast. The BoE remains cautious on the outlook for the economy however, and continues to signal that rate hikes remain very distant and even tout the idea that QE remains an option if circumstances deteriorate. Overall, that message should contrast a less accommodative Fed, leaving us biased to the downside for GBP/USD from current levels”.
GBP/USD levels to consider
The pair is now up 0.03% at 1.5595 facing the next resistance at 1.5667 (high Sep.5) followed by 1.5718 (high Aug.21) and finally 1.5753 (high Jun.17). On the flip side, a breakdown of 1.5573 (low Sep.5) would aim for 1.5557 (MA10d) and then 1.5556 (low Sep.4).