The sterling pound (GBP) enters the American session on Tuesday without changes against the US dollar (USD) while also seeking to try to stabilize after a recent setback, indicate the Chief of currency strategies of Scotiabank, Shaun Osborne and Eric Theoret.
The markets soften the expectations of relaxation of the BOE, offering support
“The expectations of domestic rates are offering some support as the markets soften their expectations of relaxation of the BOE. A trim of 25 basic points for August 7 has almost completely discounted, but the markets are evaluating the magnitude of the additional relaxation by the end of the year and have softened their expectations in approximately 5 basic points during the last week approximately.”
“The latest CFTC positioning data revealed a significant change in the feeling towards the GBP, since the long bullish position of 2.4 billion dollars has flattened neutral.”
“The GBP technicians look somewhat more worrying after the last setback. The last minimum extended marginally below the support area of mid -July in the average range of 1.33, opening the possibility of a change in the trend. New profits towards 1.34 would allow a return to a more neutral vision, while a rupture towards new minimums with a goal of 1.3 would change our perspective in a more bearish perspective.”
Source: Fx Street
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