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26 Feb 2015
GBP/USD: Supported on BoE outlook - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, Chief FX Strategist and Managing director noted the conditions surrounding GBP/USD.
Key Quotes:
"GBP rallied to a fresh 6‐week highs, flirting but failing an upside break of the 100‐day MA at (1.5568) and then sterling back to enter the NA session flat to yesterday’s close."
"Fundamental developments were encouraging with an as expected Q4 GDP (second estimate) print at 0.5%q/q and 2.7%y/y, but unexpected strength in exports, up +3.5%, likely on the back of weakness in GBP; offset by softness in business investment –1.4%q/q and consumption +0.5%q/q."
"On a relative basis the UK is better positioned than most."
"From the BoE perspective, it will need to see a shift in the inflation pattern that confirms the impact of oil prices is the temporary drag, but then it is likely to move towards its hiking cycle earlier than the other European economies, helping to support GBP."
Key Quotes:
"GBP rallied to a fresh 6‐week highs, flirting but failing an upside break of the 100‐day MA at (1.5568) and then sterling back to enter the NA session flat to yesterday’s close."
"Fundamental developments were encouraging with an as expected Q4 GDP (second estimate) print at 0.5%q/q and 2.7%y/y, but unexpected strength in exports, up +3.5%, likely on the back of weakness in GBP; offset by softness in business investment –1.4%q/q and consumption +0.5%q/q."
"On a relative basis the UK is better positioned than most."
"From the BoE perspective, it will need to see a shift in the inflation pattern that confirms the impact of oil prices is the temporary drag, but then it is likely to move towards its hiking cycle earlier than the other European economies, helping to support GBP."