8 Jul 2015
GBP/USD: Downside on dollar strength wide open
FXStreet (Guatemala) - GBP/USD is currently trading at 1.5338 with a high of 1.5468 and a low of 1.53.28.
GBP/USD price action and technical analyses
Bearish on dollar strength. GBP/USD has dropped away from 1.5440, 1.5339/60 and is currently testing 1.5330 and June 9th territory. Kare Jones, chief analyst at Commerzbank explained that they are bearish and will look for further losses."
GBP/USD fundamentals
Jane Foley, Senior Currency Strategist at Rabobank explained that in recent months the Bank has been projecting the view that inflation is on course to push higher at the end of this year and into 2016 as the effects of last year’s oil price drop fall out of the consumer price index. "This arguments still holds. However, commodity prices in general are still soft. Supply gluts and weak Chinese growth remain as dark clouds over the outlook for many commodity prices. Combining this with sterling strength means lower for longer UK inflation projections and therefore the Bank may not need to hike rates for some months yet...we favour a slight moderate in GBP/USD towards 1.52 on a 3 mth view." We now await the FOMC minutes.
GBP/USD and Greek developments
GBP/USD bears are riding the speculation of a Grexit. Greece now have until just Friday to submit their final proposal ahead of the EU summit on sunday and show time. Meanwhile, the Greece ESM letter was submitted requesting a loan facility to be used to meet Greece’s debt obligations and to ensure stability of the financial system, with an expressed desire to clear our outstanding arrears with the IMF and the Bank of Greece. The letter also outlined the time frame for delivering the outstanding proposal as, "The Greek government will on Thursday 9 July at the latest set out in detail its proposals for a comprehensive and specific reform agenda for assessment by the three Institutions to be presented to the Eurogroup."
GBP/USD price action and technical analyses
Bearish on dollar strength. GBP/USD has dropped away from 1.5440, 1.5339/60 and is currently testing 1.5330 and June 9th territory. Kare Jones, chief analyst at Commerzbank explained that they are bearish and will look for further losses."
GBP/USD fundamentals
Jane Foley, Senior Currency Strategist at Rabobank explained that in recent months the Bank has been projecting the view that inflation is on course to push higher at the end of this year and into 2016 as the effects of last year’s oil price drop fall out of the consumer price index. "This arguments still holds. However, commodity prices in general are still soft. Supply gluts and weak Chinese growth remain as dark clouds over the outlook for many commodity prices. Combining this with sterling strength means lower for longer UK inflation projections and therefore the Bank may not need to hike rates for some months yet...we favour a slight moderate in GBP/USD towards 1.52 on a 3 mth view." We now await the FOMC minutes.
GBP/USD and Greek developments
GBP/USD bears are riding the speculation of a Grexit. Greece now have until just Friday to submit their final proposal ahead of the EU summit on sunday and show time. Meanwhile, the Greece ESM letter was submitted requesting a loan facility to be used to meet Greece’s debt obligations and to ensure stability of the financial system, with an expressed desire to clear our outstanding arrears with the IMF and the Bank of Greece. The letter also outlined the time frame for delivering the outstanding proposal as, "The Greek government will on Thursday 9 July at the latest set out in detail its proposals for a comprehensive and specific reform agenda for assessment by the three Institutions to be presented to the Eurogroup."