GBP: $1.40 level has hit with a wall of offers - BBH

Sterling rose against the dollar for the second consecutive week even though the investors reduced the chance of a BOE rate hike in May from a little more than a 75% chance to a little more than 2/3, points out Marc Chandler, Global Head of Currency Strategy at BBH. 

Key Quotes

“Here in March, Bloomberg data shows only two sessions in which sterling has fallen against the dollar.  Sterling has also done well this month so far against the euro.”

“The $1.40 level was flirted with last week hit what appeared to be a wall of offers.  Sterling backed off, briefly dipped below $1.39 before the week but closed firmly, and is positioned now, to have a running start at a re-test.  A break would initially target $1.41 but would also lift the medium-term outlook.  Some investors may be cautious ahead of indications where the EU Summit will allow Brexit negotiations progress to the next stage.”