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18 Feb 2014
Flash: GBP/USD: there is significant near-term risk - Scotiabank
FXStreet (Córdoba) - Camilla Sutton, Chief FX Strategist at Scotiabank, comments that there is significant near-term GBP risk with the looming release of unemployment and the BoE minutes tomorrow.
Key Quotes
"GBP is flat into the NA open after a volatile session, that saw significant downward pressure on sterling before the release of soft CPI and then some retracement; however GBP is 100 points below yesterday's high".
"For the first time in over four years, inflation in the UK has fallen below the BoE's target, coming in at 1.9%y/y in January on headline and falling to 1.6% y/y on core. There is significant near-term GBP risk with the looming release of unemployment and the BoE minutes during tomorrow's session."
"GBP/USD short‐term technicals: bullish—spot has faded from its highs but technicals sell warn of upside risk. Support lies at Friday's open of 1.6659, followed by the psychologically important 1.6600; while resistance lies at yesterday's highs of 1.6823".
Key Quotes
"GBP is flat into the NA open after a volatile session, that saw significant downward pressure on sterling before the release of soft CPI and then some retracement; however GBP is 100 points below yesterday's high".
"For the first time in over four years, inflation in the UK has fallen below the BoE's target, coming in at 1.9%y/y in January on headline and falling to 1.6% y/y on core. There is significant near-term GBP risk with the looming release of unemployment and the BoE minutes during tomorrow's session."
"GBP/USD short‐term technicals: bullish—spot has faded from its highs but technicals sell warn of upside risk. Support lies at Friday's open of 1.6659, followed by the psychologically important 1.6600; while resistance lies at yesterday's highs of 1.6823".