News | Forex Optimum

News

News

GBP sees re-evaluation – Rabobank

Jane Foley, the senior FX strategist at Rabobank, notes that the weekend comments from MPC member Vlieghe were the third set of dovish remarks from a BoE policymaker since the start of the year after those last week from Governor Carney and Tenreyro.

  • "The remarks have been followed by yesterday's releases of poor UK production figures and weaker than expected November UK GDP data which at -0.3% m/m reinforces the fact that the domestic economy is growing below trend. Insofar as CPI inflation at 1.5% y/y currently is also lower than the Bank's 2.0% inflation forecast and recent retailing surveys have been soft, the market is considering the likelihood that the January 30 MPC meeting could be bring a potential change in interest rate policy. This view has been clearly reflected in the drop in the value of GBP.
  • Having broken below the GBP/USD 1.30 level yesterday, cable dipped as far as 1.2950 this morning before pushing back to 1.30. Despite this bounce, we see risk that unless forthcoming UK economic data releases surprise to the upside, cable could soon set its sights on the post-election low close to 1.2905.
  • Since PM Johnson became PM, the market has taken a consistently more optimistic outlook on GBP on the expectations that political uncertainty in the UK would decline. CFTC speculators' data show that net positions have been positive for the past three weeks which is the longest run since the middle of 2018. That said, already GBP has given back a significant proportion of its post-election gains.
  • In view of perceived rate cut risk and given that the UK and the EU still have to hammer out their future relationship, some of this optimism could be misplaced. Given the soft economic backdrop, we maintain our view that GBP/USD could struggle to hold levels above 1.30 on a 3- to 6-month view unless solid progress is made in the UK/EU future relationship talks."

You may also be interested:

18:27 10.08.2020
Be cautious here: key levels to watch in GBP/USD and EUR/GBP - MUFG
ForexLive reports that MUFG Research adopts a cautious bias on GBP in the near-term."Over the last two weeks the GBP has been the best performing G10 currency. Unless there is a broader deterioration in overall investor risk sentiment, the GBP appears well placed to extend its advance in the near-term." "If cable is able to break above the 1.3200 where the highs from earlier this year are located, it will open the door to a potential test of the December 2019 high at close to the 1.3500."
17:42 10.08.2020
AUD/USD aims 18-month high at 0.7243 amid greenback frailty - TDS
FXStreet reports that strategists at TD Securities remark that the AUD/USD pair has found support at the 0.7140 today and is now trading at 0.7175, up 0.20% on  the day. The aussie should see a test of the 0.7243 18-month high amid USD weakness.“We note that AUD/USD found good support at a trendline that intersects at 0.7140 today.”“While we remain biased toward a weaker USD overall, a further pullback would first see a test of the 0.7120 pivot, while good support should be seen in the 0
17:23 10.08.2020
U.S. job openings surge 9.6 percent in June; hires decrease 7.0 percent
The Job Openings and Labor Turnover Survey (JOLTS) published by the Labor Department on Monday revealed a 9.6 percent m-o-m jump in the U.S. job openings in June after a revised 7.5 percent m-o-m surge in May (originally an 8.0 percent m-o-m climb).According to the report, employers posted 5.889 million job openings in June compared to the May figure of 5.371 million (revised from 5.397 million in the original estimate) and economists’ expectations of 4.910 million. The job openings rate
Deposit
options
Trading
platform
download
Bonuses VIP