GBP/USD to head toward 1.2850 on a break past 1.2725 – Scotiabank

GBP/USD extends gains after the Bank of England (BoE) leaves interest rate unchanged. Economists at Scotiabank analyze the pair’s outlook.

Support aligns at 1.2650

The BoE left its key rate unchanged at 5.25%. Markets have pared back BoE easing bets in the wake of the decision and the GBP is extending gains. Governor Bailey said there was ‘some way to go’ on inflation and the vote was split 6-3 in favour of a hold (dissenters favoured a hike).

Spot trends are bullish and enjoy the solid backing of bullish trend strength signals on the intraday, daily and weekly DMI signals.

A push above the late November/early December peaks targets 1.2850.

Support is 1.2650.

Dec 14, 2023

ECB: Pushback on the market’s pricing for cuts will drive EUR/USD towards 1.10 – Scotiabank

EUR/USD firmer ahead of ECB. Economists at Scotiabank analyze the pair’s outlook ahead of the Caution on rate outlook will be supportive Refreshed staff forecasts for inflation and growth will give policymakers a little more perspective on the rate outlook but it remains to be seen whether the ECB’s leadership is willing to mimic the Fed and endorse market expectations of an early start to the easing cycle.

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Dec 14, 2023

Bailey speech: We cannot say that interest rates have peaked

Following the Bank of England's (BoE) no-rate change decision at its December meeting, Governor Andrew Bailey is on the wires, noting that “we cannot say that interest rates have peaked.” Additional quotes There is more to do on bringing inflation down to target.

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