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19 Mar 2014
GBP/USD push higher beyond 1.6640
FXStreet (Edinburgh) - The optimism around the pound remains unchanged on Wednesday, now lifting the GBP/USD to fresh session highs above 1.6640.
GBP/USD buoyant after data, minutes
The pair is prolonging the upside after dipping to multi-week lows near 1.6540 on Tuesday, grabbing further tailwinds after better-than-expected employment figures in the UK economy and steady BoE minutes. “In that regard, the BoE minutes to the March decision showed a unanimous vote to leave policy unchanged although there are a range of views on the amount of spare capacity in the UK. The general tone though suggests that the BoE are keen to keep rate hike expectations pushed back with an emphasis on sterling strength, which has tightened monetary conditions already. Nonetheless, with the UK growth and employment story looking very healthy we are comfortable with the view that the BoE will end up tightening policy within the next twelve months, most probably at the February 2015 MPC meeting”, commented James Knightley, Analyst at ING Bank NV.
GBP/USD levels to watch
The pair is now advancing 0.32% at 1.6667 (high Mar.17) ahead of 1.6719 (high Mar.13) and then 1,6745 (high Mar.10). On the flip side, a breakdown of 1.6545 (low Mar.18) would open the door to 1.6500 (psychological level) and then 1.6425 (low Feb.12).
GBP/USD buoyant after data, minutes
The pair is prolonging the upside after dipping to multi-week lows near 1.6540 on Tuesday, grabbing further tailwinds after better-than-expected employment figures in the UK economy and steady BoE minutes. “In that regard, the BoE minutes to the March decision showed a unanimous vote to leave policy unchanged although there are a range of views on the amount of spare capacity in the UK. The general tone though suggests that the BoE are keen to keep rate hike expectations pushed back with an emphasis on sterling strength, which has tightened monetary conditions already. Nonetheless, with the UK growth and employment story looking very healthy we are comfortable with the view that the BoE will end up tightening policy within the next twelve months, most probably at the February 2015 MPC meeting”, commented James Knightley, Analyst at ING Bank NV.
GBP/USD levels to watch
The pair is now advancing 0.32% at 1.6667 (high Mar.17) ahead of 1.6719 (high Mar.13) and then 1,6745 (high Mar.10). On the flip side, a breakdown of 1.6545 (low Mar.18) would open the door to 1.6500 (psychological level) and then 1.6425 (low Feb.12).