18 Sep 2013
GBP/USD climbs to 8-month highs
FXstreet.com (Edinburgh) -The sterling keeps pushing higher on Wednesday, lifting the GBP/USD to multi-month highs around 1.5975/80 after the BoE minutes.
GBP/USD now eyes 1.6000
The somewhat hawkish tone from the BoE minutes gave further impulse to the pound after the MPC members are not seeing any need for extra stimulus in the UK economy at the present, voting 9-0 in favour of leaving the status quo. The other important point argued by the central bank was the higher UK yields, saying that they were following developments in the US economy and acted as a response to positive results in the domestic economy. Tim Davis, Analyst at TD Securities, commented, “The Minutes did try to talk down the pound a little stating that "the appreciation of sterling meant that CPI inflation was marginally less likely than a month ago to be above 2.5% in 18-24 months’ time” but the market largely ignored this, paying more attention to the lack of push back against higher yields and acknowledgement of the better growth outlook”.
GBP/USD relevant levels
As of writing the pair is up 0.46% at 1.5977 with the net resistance at 1.6008 (high Jan.18) followed by 1.6040 (high Jan.17) and then 1.6056 (rising channel top). On the downside, a breach of 1.5886 (low Sep.17) would expose 1.5869 (low Sep.16) and finally 1.5776 (low Sep.12/13).
GBP/USD now eyes 1.6000
The somewhat hawkish tone from the BoE minutes gave further impulse to the pound after the MPC members are not seeing any need for extra stimulus in the UK economy at the present, voting 9-0 in favour of leaving the status quo. The other important point argued by the central bank was the higher UK yields, saying that they were following developments in the US economy and acted as a response to positive results in the domestic economy. Tim Davis, Analyst at TD Securities, commented, “The Minutes did try to talk down the pound a little stating that "the appreciation of sterling meant that CPI inflation was marginally less likely than a month ago to be above 2.5% in 18-24 months’ time” but the market largely ignored this, paying more attention to the lack of push back against higher yields and acknowledgement of the better growth outlook”.
GBP/USD relevant levels
As of writing the pair is up 0.46% at 1.5977 with the net resistance at 1.6008 (high Jan.18) followed by 1.6040 (high Jan.17) and then 1.6056 (rising channel top). On the downside, a breach of 1.5886 (low Sep.17) would expose 1.5869 (low Sep.16) and finally 1.5776 (low Sep.12/13).