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Sterling Focus (morning) Fundamental Analysis
Blair Baker, Foreign Exchange Analyst and Strategist
at
GCI Financial Ltd
The British pound crashed hard vis-à-vis the U.S. dollar today as cable tested bids around the US$ 1.9100 figure after failing to get above the $1.9300 figure. The driver was the release of softer-than-expected minutes from the Bank of England Monetary Policy Committee’s meeting a couple of weeks ago. Policymakers discussed the possibility of lowering rates, contrary to expectations. Liquidity was said to be thin in London dealing today. Today’s MPC minutes follow other data released this week that evidenced a deceleration in housing market activity and worsening fiscal conditions. Other data released today saw overall Q3 U.K. business investment rise by 1.0% q/q, mostly on account of a sharp increase in services investment. Many economists expect U.K. Q3 GDP data to not be revised. Cable bids are seen around the US$ 1.9060 level. The euro continued its ascent vis-à-vis the British pound with the single currency testing offers around the £0.7000 figure and finding support around the £0.6925 level.
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| Sterling Focus (morning)
Technical Analysis
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| Support
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Resistance
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L1. 1.8075 1.8850
L2. 1.7790 1.8925
L3. 1.7500 1.9000
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Commentary provided by
Blair Baker, Foreign Exchange Analyst and
Strategist at GCI Financial Ltd
GCI Financial Ltd is a leading
provider of professionally- managed foreign exchange investment
services and offers a comprehensive online foreign exchange
trading/ dealing platform for individual and institutional
clients.
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source: DTN Market Access
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