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16 May 2014
GBP/USD will see more from BoE
FXStreet (Guatemala) - GBP/USD is trading at 1.6827, up 0.22% on the day, having posted a daily high at 1.6843 and low at 1.6784.
GBP/USD has been higher into the closing day of this weeks session, despite the fact, and as RBS strategists pointed out, the May Inflation Report did not include any major revisions to the outlook for growth and inflation, which no doubt has been a disappointment to those expecting a more hawkish shift in response to mixed signals of labour market tightening. “Because the Inflation Report is more reflective of the committee consensus than the minutes, there's a risk that signs of disagreement over the state of the labour market and the amount of spare capacity emerge within the minutes”
GBP/USD on BoE minutes
The RBS analysts further added, “Still, we do not expect the minutes to reveal any dissenting voters at the May meeting. The CPI is released as well and base-effect related weakness may lead to a rebound in headline inflation rate to 1.8% y/y and the core rate to 1.7% y/y. Bank of England Governor Carney will make an appearance on Sky News over the coming weekend”.
GBP/USD Levels
Spot is presently trading at 1.6827, and next resistance can be seen at 1.6828 (Daily 20 SMA), 1.6843 (Daily High), 1.6853 (Daily Classic R2), 1.6868 (Weekly High) and 1.6874 (Hourly 200 SMA). Next support to the downside can be found at 1.6822 (Daily Classic R1), 1.6815 (Hourly 100 SMA), 1.6808 (Yesterday's High), 1.6805 (Hourly 20 EMA) and 1.6789 (Daily Open).
GBP/USD has been higher into the closing day of this weeks session, despite the fact, and as RBS strategists pointed out, the May Inflation Report did not include any major revisions to the outlook for growth and inflation, which no doubt has been a disappointment to those expecting a more hawkish shift in response to mixed signals of labour market tightening. “Because the Inflation Report is more reflective of the committee consensus than the minutes, there's a risk that signs of disagreement over the state of the labour market and the amount of spare capacity emerge within the minutes”
GBP/USD on BoE minutes
The RBS analysts further added, “Still, we do not expect the minutes to reveal any dissenting voters at the May meeting. The CPI is released as well and base-effect related weakness may lead to a rebound in headline inflation rate to 1.8% y/y and the core rate to 1.7% y/y. Bank of England Governor Carney will make an appearance on Sky News over the coming weekend”.
GBP/USD Levels
Spot is presently trading at 1.6827, and next resistance can be seen at 1.6828 (Daily 20 SMA), 1.6843 (Daily High), 1.6853 (Daily Classic R2), 1.6868 (Weekly High) and 1.6874 (Hourly 200 SMA). Next support to the downside can be found at 1.6822 (Daily Classic R1), 1.6815 (Hourly 100 SMA), 1.6808 (Yesterday's High), 1.6805 (Hourly 20 EMA) and 1.6789 (Daily Open).