22 Dec 2014
GBP is soft with mixed technicals - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted that the GBP is soft, but trading within last week’s range.
Key Quotes:
"News flow and data has been relatively quiet, as the market looks to the impact of oil prices and Russia on the U.K. and GBP. The BoE’s Miles suggests that substantial amount of the fall in inflation is related to lower oil prices."
"GBP/USD short‐term technicals: mixed—GBP is trading within a month and a half range of 1.5541 to 1.5826, which it is likely to maintain into the new year. We are biased to trade GBP as a range play and accordingly see better risk reward elsewhere."
Key Quotes:
"News flow and data has been relatively quiet, as the market looks to the impact of oil prices and Russia on the U.K. and GBP. The BoE’s Miles suggests that substantial amount of the fall in inflation is related to lower oil prices."
"GBP/USD short‐term technicals: mixed—GBP is trading within a month and a half range of 1.5541 to 1.5826, which it is likely to maintain into the new year. We are biased to trade GBP as a range play and accordingly see better risk reward elsewhere."