- Analytics
- News and Tools
- Market News
- GBP/USD: Break under 1.30 to trigger a slide to support in the 1.2775-1.2800 area – Westpac
GBP/USD: Break under 1.30 to trigger a slide to support in the 1.2775-1.2800 area – Westpac
Surveys and updated Bank of England (BoE) forecasts for MPC on Thursday, May 5 will be critical in determining how aggressive the cost of living shock will be and so the vulnerability of GBP. The GBP/USD pair could slide to the 1.2775-1.2800 area on a sustained break below 1.30, economists at Westpac report.
Is UK facing a cost-of-living-crunch or a merely pause in the economic upswing?
“A series of timely surveys will be released into the end of this month and so ahead of the BoE’s early May MPC meeting. The MPC will also receive their quarterly Monetary Policy Review with its updated forecasts. Collectively, the data should provide the MPC with more insight on the potential severity of the UK’s cost-of-living crisis. The impact of the surge on discretionary spending will be a key factor for MPC’s hiking path.”
“Markets are currently pricing between 125 and 150 bps of further hikes into end 2022 though MPC has implied a softer path.”
“GBP/USD has tested levels below 1.30. A break could trigger a slide to support in the 1.2775-1.2800 area. GBP needs a close above 1.3150 to reduce such pressure.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
