10 Oct 2014
GBP/USD remains bearish – Scotiabank
FXStreet (Edinburgh) - Camilla Sutton, Chief FX Strategist at Scotiabank, signalled the outlook on the pair remains on the bearish side.
Key Quotes
“Unlike several other currency pairs, GBPUSD is still moving in tandem with US-UK 2 year spreads”.
“The expectations for the first BoE rate hike increase is shiting from late this year to mid-2015; partially a response to a softening in the data, including inflation levels which are now below 2% and trending lower”.
“Today trade data was disappointing as exports dropped to four-year lows, highlighting how vulnerable the UK is to difficult growth outlooks both within and beyond Europe”.
“Next week the focus will be CPI, expected to drift lower to 1.4% and 1.8% on headline and core, respectively; followed by the employment release later in the week”.
Key Quotes
“Unlike several other currency pairs, GBPUSD is still moving in tandem with US-UK 2 year spreads”.
“The expectations for the first BoE rate hike increase is shiting from late this year to mid-2015; partially a response to a softening in the data, including inflation levels which are now below 2% and trending lower”.
“Today trade data was disappointing as exports dropped to four-year lows, highlighting how vulnerable the UK is to difficult growth outlooks both within and beyond Europe”.
“Next week the focus will be CPI, expected to drift lower to 1.4% and 1.8% on headline and core, respectively; followed by the employment release later in the week”.