- Analytics
- News and Tools
- Market News
- GBP/USD: Trading softer on the day – Scotiabank
GBP/USD: Trading softer on the day – Scotiabank
BoE MPC’s Greene sounded cautious on the near-term outlook for policy in remarks yesterday, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
BoE shows caution on rate outlook
“She noted that while inflationary pressures were moderating, the government’s recent budget would lift prices and that wage growth was still too high. She noted that the risk of cutting too early was greater than going slowly on policy accommodation.”
“Governor Bailey echoed the cautious stance today, stating that the UK government’s recently announced increase in employer National Insurance contributions could result in higher prices, lower employment or other outcomes. The governor said the BoE will have to move cautiously on policy as it monitors these impacts. Markets remain reluctant to price in more than a minimal chance of a rate cut at the Bank’s December policy meeting.”
“Moderate gains in the pound yesterday have not developed into a serious challenge of the broader downtrend in spot. Rather, price action appears to be a consolidation in recent weakness ahead of another push lower. Minor support is 1.26 ahead of long-term trend support at 1.2575. Resistance is 1.2680/90.”
© 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
