5 Sep 2013
GBP/USD challenging 1.5600
FXstreet.com (Edinburgh) -The sterling in trading on a softer tone on Thursday, taking the GBP/USD to test the key support at 1.5600 the figure after yesterday’s peaks around 1.5650.
GBP/USD eyes on the BoE
The BoE will hold its monthly gathering later on in the European midday as the main event for the sterling. Market consensus expects the central bank commanded by M.Carney to stay put and leave both the refi rate and the purchases of Gilts at 0.5% and £375 billion, respectively. “It’s not only unclear what the BoE will say, but if it will say anything at all as it’s uncertain whether or not we get a statement. Our suspicion is that in either case the markets will take a hawkish interpretation; no statement means that the BoE did not take the chance to talk down higher rates, and any statement is unlikely to push back as hard as the BoE did in July with the “unwarranted” talk, at least judging from Carney’s softer stance in his 28 Aug speech”, remarked Alvin Pontoh, Macro Strategist at TD Securities.
GBP/USD critical levels
At the moment the pair is losing 0.13% at 1.5603 facing the next support at 1.5556 (low Sep.4) followed by 1.5548 (MA10d) and then 1.5522 (low Sep.3). On the flip side, a break above 1.5626 (high Sep.5) would open the door to 1.5648 (high Sep.4) and finally 1.5718 (high Aug.21).
GBP/USD eyes on the BoE
The BoE will hold its monthly gathering later on in the European midday as the main event for the sterling. Market consensus expects the central bank commanded by M.Carney to stay put and leave both the refi rate and the purchases of Gilts at 0.5% and £375 billion, respectively. “It’s not only unclear what the BoE will say, but if it will say anything at all as it’s uncertain whether or not we get a statement. Our suspicion is that in either case the markets will take a hawkish interpretation; no statement means that the BoE did not take the chance to talk down higher rates, and any statement is unlikely to push back as hard as the BoE did in July with the “unwarranted” talk, at least judging from Carney’s softer stance in his 28 Aug speech”, remarked Alvin Pontoh, Macro Strategist at TD Securities.
GBP/USD critical levels
At the moment the pair is losing 0.13% at 1.5603 facing the next support at 1.5556 (low Sep.4) followed by 1.5548 (MA10d) and then 1.5522 (low Sep.3). On the flip side, a break above 1.5626 (high Sep.5) would open the door to 1.5648 (high Sep.4) and finally 1.5718 (high Aug.21).