6 May 2015
GBP/USD outlook still bullish – Scotiabank
FXStreet (Edinburgh) - Camilla Sutton, Chief FX Strategist at Scotiabank, noted the bullish stance on the sterling in light of the imminent UK elections.
Key Quotes
“Tomorrow’s looming election has been a significant market focus, with the latest polls leaning towards a slim conservative win that will force a coalition. However with major issues unresolved, uncertainty is unlikely to end on election day”.
“For sterling the shift higher has been in tandem with changing BoE expectations”.
“The market has gone from pricing in a 20% chance of an interest rate cut sometime in the next 12-months to pricing in a 16% chance of an interest hike in the next year; helping to support GBP”.
“Today’s data was encouraging, with services PMI jumping back up to 59.5”.
“Technical studies warn of upside risk; however the upcoming election could create significant volatility. Leading into the results, support lies at the 50-day MA at 1.5000, with resistance at the recent high of 1.5498”.
Key Quotes
“Tomorrow’s looming election has been a significant market focus, with the latest polls leaning towards a slim conservative win that will force a coalition. However with major issues unresolved, uncertainty is unlikely to end on election day”.
“For sterling the shift higher has been in tandem with changing BoE expectations”.
“The market has gone from pricing in a 20% chance of an interest rate cut sometime in the next 12-months to pricing in a 16% chance of an interest hike in the next year; helping to support GBP”.
“Today’s data was encouraging, with services PMI jumping back up to 59.5”.
“Technical studies warn of upside risk; however the upcoming election could create significant volatility. Leading into the results, support lies at the 50-day MA at 1.5000, with resistance at the recent high of 1.5498”.