The Pound sterling (GBP) has weakened and enters the American session on Monday with a slight fall of 0.1% against Dollar American (USD), quoting just below the maximum of several years of last week, they report Shaun Osborne and Eric Theoret, Scotiabank’s Chief of currency strategies.
Weakened pound while markets discount BOE cuts
“The final publication of the United Kingdom’s GDP of the first quarter was in line with expectations at 0.7% quarterly and 1.3% year -on -year. The numbers of domestic loans in May were weak. We expect a risk of holders of the Sintra forum of the ECB, since the markets will seek possible indications on the policy perspective of the BOE. The markets are discounted approximately 21 basic points of flexibility for the meeting August and more than 50 basic points for the end of the year. “
“The technical perspectives are bullish with a clear sequence of minimum and maximum higher. The rally of last week led to the GBP/USD to new maximums of several years and the Momentum indicators are bulls with a RSI in 64. We see limited resistance before the psychologically important level of 1.40 and we hope that the short -term range is limited between the support in the middle of 1.36 and the resistance closer to 1.38.
Source: Fx Street
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