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14 May 2014
GBP/USD in multi-week lows near 1.6760
FXStreet (Edinburgh) - The sterling is nose-diving after the release of the BoE’s Quarterly Inflation Report, taking the GBP/USD to test the 1.6750 region so far.
GBP/USD in 4-week lows
The pair is testing fresh lows following the unexpected dovish tone from the BOE’s Quarterly Inflation Report, where it said that the CPI forecast is broadly unchanged from February and it also sees the UK economy expanding 3.4% in 2014 and 2.9% in 2015. The BoE sees equilibrated labour markets with jobless rate around 5.25%-5.75% although the path of slack remains uncertain. Market expectations for a rate hike are now placed in the second quarter of 2015 while the BoE stressed that rates will remain in historical low levels for as much time as needed. Governor Carney’s presser is now on, and amongst other appreciations he said he will not validate any market rate curves and that monetary policy is not the right tool to deal with the housing sector.
GBP/USD levels to watch
The pair is now down 0.18% at 1.6794 and a breakdown of 1.6762 (low Apr.23) would expose 1.6727 (23.6% of 1.5854-1.6997) and then 1.6721 (low Apr.16). On the flip side, the initial hurdle aligns at 1.6843 (21-d MA) followed by 1.6875 (high May 14) and finally 1.6883 (high May 13).
GBP/USD in 4-week lows
The pair is testing fresh lows following the unexpected dovish tone from the BOE’s Quarterly Inflation Report, where it said that the CPI forecast is broadly unchanged from February and it also sees the UK economy expanding 3.4% in 2014 and 2.9% in 2015. The BoE sees equilibrated labour markets with jobless rate around 5.25%-5.75% although the path of slack remains uncertain. Market expectations for a rate hike are now placed in the second quarter of 2015 while the BoE stressed that rates will remain in historical low levels for as much time as needed. Governor Carney’s presser is now on, and amongst other appreciations he said he will not validate any market rate curves and that monetary policy is not the right tool to deal with the housing sector.
GBP/USD levels to watch
The pair is now down 0.18% at 1.6794 and a breakdown of 1.6762 (low Apr.23) would expose 1.6727 (23.6% of 1.5854-1.6997) and then 1.6721 (low Apr.16). On the flip side, the initial hurdle aligns at 1.6843 (21-d MA) followed by 1.6875 (high May 14) and finally 1.6883 (high May 13).