The sterling pound (GBP) is weak, falling 0.3% against the US dollar (USD) and surrendering in most of the G10 currencies in Wednesday’s NA session, the FX chief strategists of Scotiabank, Shaun Osborne and Eric Theoret and Eric Theoret indicate.
The upward trend of several months seems to be exhausted
“The comments of the MPC member of the BOE, Taylor, a minority dove that voted for a cut of 25 basic points while most voted to maintain, have highlighted concerns about the United Kingdom’s ability to achieve soft landing and downward risks for inflation that could require additional relief.”
“The rates markets are valuing around 56 basic stalls of relief by the end of the year, adding approximately 15 basic points in the last month. The markets are valuing a 90% probability of a cut for the next meeting of the BOE on August 7. The upward trend of several months seems to be somewhat exhausted after a period of negative divergence in which the Momentum indicators failed to confirm the new maximums in the spot.”
“The GBP/USD has had difficulties above the early resistance in the middle of 1.37. We continue to highlight the importance of the medium -term support in the 50 -day mobile average (1,3462) and anticipate a limited short -term range between the support of 1,3650 and the resistance of 1,3750/1,3780.”
Source: Fx Street
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