GBP/USD likely to confined to a 1.30-1.33 range this month - Westpac

BOE Carney’s less-hawkish testimony and hiccups in the Brexit talks weighed on GBP this week and these factors are likely to remain important for markets, with the BOE due to meet on 2 Nov, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Recent data has been firmer than expected, our data pulse model showing short term economic momentum running above average.”

“That has kept GBP/USD confined to a 1.30-1.33 range this month, and it’s hard to see that changing during the week ahead.”

“Brexit uncertainty and the erosion of the govt’s financial margin for manoeuvre into the autumn budget are likely to keep GBP capped.”