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10 Feb 2014
Flash: GBP could suffer ahead of BoE's QIR - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, observed that the BoE's Quarterly Inflation Report due on Wednesday will be crucial for the GBP.
Key Quotes
"In the aftermath of Friday's weaker US jobs data we saw US dollar selling across the board before some bounce back - notably in USDJPY, quickly reclaiming a 102 handle after trying twice below 101.50. EURUSD steadied in the low 1.36s and GBPUSD has well and truly bounced from the 1.6260 support to reclaim a birth at 1.64 and open up for a retest higher - that support level is now even more important for the pair and when we break below it will likely see considerable momentum, which could drag GBPUSD close to 1.6000."
"A potential catalyst for a GBPUSD move lower this week is the Bank of England Quarterly Inflation Report on Wednesday. Many economists expect Governor Mark Carney to change the current forward guidance rhetoric and potentially lower the knockout criteria for a review on policy, since the UK unemployment rate has fallen more sharply than expected."
Key Quotes
"In the aftermath of Friday's weaker US jobs data we saw US dollar selling across the board before some bounce back - notably in USDJPY, quickly reclaiming a 102 handle after trying twice below 101.50. EURUSD steadied in the low 1.36s and GBPUSD has well and truly bounced from the 1.6260 support to reclaim a birth at 1.64 and open up for a retest higher - that support level is now even more important for the pair and when we break below it will likely see considerable momentum, which could drag GBPUSD close to 1.6000."
"A potential catalyst for a GBPUSD move lower this week is the Bank of England Quarterly Inflation Report on Wednesday. Many economists expect Governor Mark Carney to change the current forward guidance rhetoric and potentially lower the knockout criteria for a review on policy, since the UK unemployment rate has fallen more sharply than expected."