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6 Mar 2014
GBP/USD consolidates above 1.6700
FXStreet (Edinburgh) - The sterling is following its European peer on Thursday, with the GBP/USD meandering in a narrow range ahead of the BoE gathering.
GBP/USD eyes on BoE
The par is extending the recovery from weekly troughs near 1.6640 on Monday, pushing towards the 1.6740 area yesterday albeit currently retracing some ground to the 1.6720/25 region. According to market consensus, the BoE MPC meeting would be a non-event, leaving intact both the repo rate and the purchases of assets. Marcel Weernink, Analyst at Rabobank, assessed “In the next few meetings, the Bank is likely to stick with the essentially dovish message of the Inflation Report, whilst acknowledging that the next policy move looks set to be a rate hike. We retain our forecast that the first hike of the cycle is likely May 2015”.
GBP/USD levels to watch
At the moment the pair is gaining 0.03% at 1.6722 facing the initial hurdle at 1.6741 (high Mar.5) followed by 1.6769 (high Feb.28) and then 1.6800 (psychological level). On the other hand, a breach of 1.6682 (10-d MA) would target 1.6656 (low Mar.5) and finally 1.6640 (low Mar.4).
GBP/USD eyes on BoE
The par is extending the recovery from weekly troughs near 1.6640 on Monday, pushing towards the 1.6740 area yesterday albeit currently retracing some ground to the 1.6720/25 region. According to market consensus, the BoE MPC meeting would be a non-event, leaving intact both the repo rate and the purchases of assets. Marcel Weernink, Analyst at Rabobank, assessed “In the next few meetings, the Bank is likely to stick with the essentially dovish message of the Inflation Report, whilst acknowledging that the next policy move looks set to be a rate hike. We retain our forecast that the first hike of the cycle is likely May 2015”.
GBP/USD levels to watch
At the moment the pair is gaining 0.03% at 1.6722 facing the initial hurdle at 1.6741 (high Mar.5) followed by 1.6769 (high Feb.28) and then 1.6800 (psychological level). On the other hand, a breach of 1.6682 (10-d MA) would target 1.6656 (low Mar.5) and finally 1.6640 (low Mar.4).