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10 Feb 2014
Flash:GBP/IUSD steady ahead of MPC IR - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank notes Sterlings price action ahead of the Inflation Report (IR) from MPC this week.
Key Quotes:
"GBP is stable, and like EUR is trading comfortably between its 100 and 50‐day MA (1.6263 and 1.6420). The Wednesday release of the Inflation Report is likely to see the BoE step away from its 7% unemployment threshold and reiterate that a pricing of an interest hike in Q1 2015 is appropriate. Ultimately, this is likely to support GBP against EUR."
"GBP/USD short‐term technicals: bearish - all studies warn of further GBP downside risk; which has us biased to be short GBP/USD."
Key Quotes:
"GBP is stable, and like EUR is trading comfortably between its 100 and 50‐day MA (1.6263 and 1.6420). The Wednesday release of the Inflation Report is likely to see the BoE step away from its 7% unemployment threshold and reiterate that a pricing of an interest hike in Q1 2015 is appropriate. Ultimately, this is likely to support GBP against EUR."
"GBP/USD short‐term technicals: bearish - all studies warn of further GBP downside risk; which has us biased to be short GBP/USD."