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26 Feb 2015
GBP/USD: Giving back some space to support line
FXStreet (Guatemala) - GBP/USD is currently trading at 1.5401 with a high of 1.5553 and a low of 1.5395.
GBP/USD is giving back some ground on the 1.54 handle but, so far, the ascending supporting line from 1.5207 is holding up. There has been a turn around with the dollar into the US session with the Durable Goods beating expectations and CPI excluding food and energy came in at 0.2% vs 0.% expected.
However, the pound has been supported of late on the UK's performance and outlook. Camilla Sutton, chief FX strategist at Scotiabank explained that on a relative basis the UK is better positioned than most. From the BoE perspective, it will need to see a shift in the inflation pattern that confirms the impact of oil prices is the temporary drag, but then it is likely to move towards its hiking cycle earlier than the other European economies, helping to support GBP.
GBP/USD is giving back some ground on the 1.54 handle but, so far, the ascending supporting line from 1.5207 is holding up. There has been a turn around with the dollar into the US session with the Durable Goods beating expectations and CPI excluding food and energy came in at 0.2% vs 0.% expected.
However, the pound has been supported of late on the UK's performance and outlook. Camilla Sutton, chief FX strategist at Scotiabank explained that on a relative basis the UK is better positioned than most. From the BoE perspective, it will need to see a shift in the inflation pattern that confirms the impact of oil prices is the temporary drag, but then it is likely to move towards its hiking cycle earlier than the other European economies, helping to support GBP.