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22 Apr 2015
GBP/USD boosted by BoE Minutes, but sellers ahead – BBH
FXStreet (Barcelona) - The somewhat less dovish than expected BoE Minutes boosted GBP/USD to climb above the 1.5000 level, but the election related uncertainty and probability of a hung parliament is likely to active sellers soon, according to Brown Brothers Harriman.
Key Quotes
“Sterling has powered through the $1.50 area. It had already been recovering off yesterday's push to almost $1.4850. The BOE minutes provided the additional kick.”
“The two key points, outside that the vote was 9-0 as expected, was that a couple members thought that the decision (to keep rates steady) was close and that there was some concern about the speed at which sterling's decline will feed through to inflation. Taken together, the minutes sounded somewhat less dovish than anticipated.”
“Sterling's gain of nearly a cent on the news seems out of proportion with the 2 bp increase in the implied yields of the short-sterling futures for December 2015 and June 2016. That said, the risk is that short-term UK rates rise in the period ahead.”
“Sterling is testing last week's high near $1.5050. This is only the second time it has been above $1.50 since the March FOMC meeting. On that day, it hit $1.5165. A revisit to that area seems a bridge too far. Intra-day technicals are stretched and the prospects of a hung parliament/minority government will encourage sellers.”
Key Quotes
“Sterling has powered through the $1.50 area. It had already been recovering off yesterday's push to almost $1.4850. The BOE minutes provided the additional kick.”
“The two key points, outside that the vote was 9-0 as expected, was that a couple members thought that the decision (to keep rates steady) was close and that there was some concern about the speed at which sterling's decline will feed through to inflation. Taken together, the minutes sounded somewhat less dovish than anticipated.”
“Sterling's gain of nearly a cent on the news seems out of proportion with the 2 bp increase in the implied yields of the short-sterling futures for December 2015 and June 2016. That said, the risk is that short-term UK rates rise in the period ahead.”
“Sterling is testing last week's high near $1.5050. This is only the second time it has been above $1.50 since the March FOMC meeting. On that day, it hit $1.5165. A revisit to that area seems a bridge too far. Intra-day technicals are stretched and the prospects of a hung parliament/minority government will encourage sellers.”