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18 Feb 2014
GBP/USD consolidates below 1.6700
FXStreet (Edinburgh) - The earlier bull attempt beyond 1.6720 run out of vigour, sparking another pullback in the GBP/USD to the current 1.6690/85 region.
GBP/USD focus on u-rate, BoE minutes
Big day for the sterling tomorrow, as the key unemployment rate and the BoE minutes are due. Prior surveys expect the jobless rate to stay put at 7.1% in the three months ended in December while the Claimant Count Change is expected to decrease by 20K. In light of today’s UK inflation figures, Trevor Greetham, Director of Asset Allocation and Portfolio Manager of Fidelity’s Multi Asset Funds, commented, “With tax rates stable, the pound strong and a structural slowdown in China putting downward pressure on commodity prices we are likely to see headline and core inflation fall further over time. This lack of inflationary pressure should allow the Bank of England to maintain a relatively easy stance despite the pick up in growth, boosting real incomes and helping to sustain the economic recovery”.
GBP/USD levels to watch
The pair is now losing 0.10% at 1.6687 with the immediate support at 1.6644 (low Feb.14) ahead of 1.6594 (low Feb.13) and finally 1.6513 (21-d MA). On the flip side, a breakout of 1.6741 (high Feb.18) would open the door to 1.6823 (2014 high Feb.17) and then 1.6845 (high Nov.18 2009).
GBP/USD focus on u-rate, BoE minutes
Big day for the sterling tomorrow, as the key unemployment rate and the BoE minutes are due. Prior surveys expect the jobless rate to stay put at 7.1% in the three months ended in December while the Claimant Count Change is expected to decrease by 20K. In light of today’s UK inflation figures, Trevor Greetham, Director of Asset Allocation and Portfolio Manager of Fidelity’s Multi Asset Funds, commented, “With tax rates stable, the pound strong and a structural slowdown in China putting downward pressure on commodity prices we are likely to see headline and core inflation fall further over time. This lack of inflationary pressure should allow the Bank of England to maintain a relatively easy stance despite the pick up in growth, boosting real incomes and helping to sustain the economic recovery”.
GBP/USD levels to watch
The pair is now losing 0.10% at 1.6687 with the immediate support at 1.6644 (low Feb.14) ahead of 1.6594 (low Feb.13) and finally 1.6513 (21-d MA). On the flip side, a breakout of 1.6741 (high Feb.18) would open the door to 1.6823 (2014 high Feb.17) and then 1.6845 (high Nov.18 2009).