10 Feb 2015
GBP/USD could hit 1.5600 near-term – Westpac
FXStreet (Edinburgh) - A visit to the 1.5600 area is not ruled out in the near term, suggested strategists at Westpac.
Key Quotes
“BoE inflation report this week unlikely to give markets any reasons to buy GBP - it should contain sharp downward revisions to inflation forecasts. The bounce off 1.50 since mid-January appears to have run its course, the highly contestable May general election likely to increasingly become a big (bearish) focus”.
“The model is flat GBP for the week ahead after a largely futile four weeks shorting the currency. An ever so modest improvement in our total yield signal tips the model into a neutral stance on GBP”.
“Recent decline has traded to within 1% of our medium term target (2013 lows at 1.4810/40). Subsequent price action has triggered several bullish short signals. A rally towards 1.5600 is likely in the coming weeks”.
Key Quotes
“BoE inflation report this week unlikely to give markets any reasons to buy GBP - it should contain sharp downward revisions to inflation forecasts. The bounce off 1.50 since mid-January appears to have run its course, the highly contestable May general election likely to increasingly become a big (bearish) focus”.
“The model is flat GBP for the week ahead after a largely futile four weeks shorting the currency. An ever so modest improvement in our total yield signal tips the model into a neutral stance on GBP”.
“Recent decline has traded to within 1% of our medium term target (2013 lows at 1.4810/40). Subsequent price action has triggered several bullish short signals. A rally towards 1.5600 is likely in the coming weeks”.