13 May 2014
GBP/USD in tight range around 1.6840
FXStreet (Edinburgh) - The sterling is now looking to consolidate the intraday decline, taking the GBP/USD to the mid-1.6800s.
GBP/USD all eyes on the BoE
The pair’s recent performance will be put to the test tomorrow, as the BoE will publish its Quarterly Inflation Report following the UK labour market figures (Claimant Count at -30.0K exp. in April). In light of tomorrow’s QIR, Senior Global Strategist Jacqui Douglas at TD Securities commented, “The biggest potential for surprise lies with the updated measure of excess capacity, as that will be a big clue into how soon the BoE might raising rates, and how soon we might start seeing the first dissents toward tightening policy… If it’s unchanged then there’s little room for any big market movers within the rest of the report and the press conference. But if the BoE has agreed on a lower estimate, then this QIR will just continue the pattern of hawkish outcomes”.
GBP/USD levels to watch
As of writing the pair is losing 0.17% at 1.6839 with the next support at 1.6832 (low May 9) ahead of 1.6821 (low May 2) and then 1.6805 (low Apr.30). On the upside, a break above 1.6903 (high May 12) would open the door to 1.6939 (high May 9) and finally 1.6975 (high May 8).
GBP/USD all eyes on the BoE
The pair’s recent performance will be put to the test tomorrow, as the BoE will publish its Quarterly Inflation Report following the UK labour market figures (Claimant Count at -30.0K exp. in April). In light of tomorrow’s QIR, Senior Global Strategist Jacqui Douglas at TD Securities commented, “The biggest potential for surprise lies with the updated measure of excess capacity, as that will be a big clue into how soon the BoE might raising rates, and how soon we might start seeing the first dissents toward tightening policy… If it’s unchanged then there’s little room for any big market movers within the rest of the report and the press conference. But if the BoE has agreed on a lower estimate, then this QIR will just continue the pattern of hawkish outcomes”.
GBP/USD levels to watch
As of writing the pair is losing 0.17% at 1.6839 with the next support at 1.6832 (low May 9) ahead of 1.6821 (low May 2) and then 1.6805 (low Apr.30). On the upside, a break above 1.6903 (high May 12) would open the door to 1.6939 (high May 9) and finally 1.6975 (high May 8).