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10 Jun 2014
GBP in hands of the bears - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank suggested that near‐term studies all warn of downside risk.
Key Quotes:
"Expected weekly range: 1.6723 ‐ 1.6996, range bound favouring upside risk."
"Stronger than expected industrial production and manufacturing production, rising 3%y/y and 4.4%y/y respectively failed to support GBP, which is entering the NA session down 0.1% from yesterday’s close. Comments from BoE’s MCCafferty suggest that there is a more balanced view towards potential rate hikes."
"For GBP, the BoE view on the potential timing of the first interest rate hike is key. The release of the June 18th minutes, could lay the ground work for a more bullish GBP shift. EUR/GBP flirts with a new low, we expect on-going downside ahead."
"GBP/USD short‐term Technicals: bearish—near‐term studies all warn of downside risk, even as the longer term uptrend remains in tact. Support lies at the 100 day MA at 1.6690; while resistance is at the recent high of 1.6845."
Key Quotes:
"Expected weekly range: 1.6723 ‐ 1.6996, range bound favouring upside risk."
"Stronger than expected industrial production and manufacturing production, rising 3%y/y and 4.4%y/y respectively failed to support GBP, which is entering the NA session down 0.1% from yesterday’s close. Comments from BoE’s MCCafferty suggest that there is a more balanced view towards potential rate hikes."
"For GBP, the BoE view on the potential timing of the first interest rate hike is key. The release of the June 18th minutes, could lay the ground work for a more bullish GBP shift. EUR/GBP flirts with a new low, we expect on-going downside ahead."
"GBP/USD short‐term Technicals: bearish—near‐term studies all warn of downside risk, even as the longer term uptrend remains in tact. Support lies at the 100 day MA at 1.6690; while resistance is at the recent high of 1.6845."