17 Jun 2015
GBP/USD: focus remains on 1.5815 – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, argues that spreads do not support the GBP/USD climb higher, but the short-term technical outlook suggests 1.5815 remains in sight.
Key Quotes
“GBP is strong, outperforming with a 0.7% gain following the release of BoE minutes and employment data. The BoE minutes provided for few surprises, with a unanimously neutral voting bias and two MPC members’ ongoing view to a ‘finely balanced’ hawkish stance. The minutes’ highlight was its focus on wages and the concurrent release of employment figures with wages climbing to a 6-year high of 2.7% y/y.”
“Near term risk lies with the Fed events, and we note that the 2Y yield spread is not supportive of GBP at current levels.”
“GBPUSD short-term technicals: bullish—rally continues and momentum indicators hint to acceleration. RSI not yet overbought at 66 and focus is on recent high 1.5815.”
Key Quotes
“GBP is strong, outperforming with a 0.7% gain following the release of BoE minutes and employment data. The BoE minutes provided for few surprises, with a unanimously neutral voting bias and two MPC members’ ongoing view to a ‘finely balanced’ hawkish stance. The minutes’ highlight was its focus on wages and the concurrent release of employment figures with wages climbing to a 6-year high of 2.7% y/y.”
“Near term risk lies with the Fed events, and we note that the 2Y yield spread is not supportive of GBP at current levels.”
“GBPUSD short-term technicals: bullish—rally continues and momentum indicators hint to acceleration. RSI not yet overbought at 66 and focus is on recent high 1.5815.”