9 Apr 2014
Pound expected to rise through 1.68, testing Feb high
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained the strength of the pound.
Key Quotes:
"GBP is strong, having rallied to a fresh one month high. A broadly weaker USD combined with strong domestic data has been the catalyst."
"Industrial and manufacturing production data were both stronger than expected, rising 0.9% m/m and 1.0%m/m, respectively. This week’s BoE meeting is likely to prove a non-event; however the central bank is expected to enter its rate hiking cycle ahead of the rest of the G4, which is likely to keep GBP elevated."
"GBP/USD short‐term technicals: bullish—as spot breaks up out of recent range, bullish technical signals have firmed. We expect a near-term test of the February high of 1.6823."
Key Quotes:
"GBP is strong, having rallied to a fresh one month high. A broadly weaker USD combined with strong domestic data has been the catalyst."
"Industrial and manufacturing production data were both stronger than expected, rising 0.9% m/m and 1.0%m/m, respectively. This week’s BoE meeting is likely to prove a non-event; however the central bank is expected to enter its rate hiking cycle ahead of the rest of the G4, which is likely to keep GBP elevated."
"GBP/USD short‐term technicals: bullish—as spot breaks up out of recent range, bullish technical signals have firmed. We expect a near-term test of the February high of 1.6823."