22 Jul 2015
GBP/USD clinches highs above 1.5600
FXStreet (Edinburgh) - The sterling is now gathering traction vs. the greenback on Wednesday, with GBP/USD quickly climbing to daily tops in the 1.5600 neighbourhood.
GBP/USD focus on BoE
The pound is picking up pace following further comments by MPC member D.Miles, who know expects UK consumer prices to return to target by year-end or Q1 2016. He has also added that policy normalization is closer and that rate hikes will be gradual over the next years.
These comments add to last week’s hawkish appreciations by Governor Carney, boosting market expectations of a rate hike sooner than previously anticipated and propping up a recovery in the sterling.
Market participants will closely watch today’s minutes in light of those comments, looking for clues regarding the timing of the BoE’s lift-off.
GBP/USD relevant levels
At the moment the pair is advancing 0.33% at 1.5607 and a break above 1.5672 (high Jul.17) would open the door to 1.5700 (psychological level) and then 1.5734 (high Jul.1). On the flip side, the immediate support aligns at 1.5550 (low Jul.22) ahead of 1.5500 (psychological level) and then 1.5450 (low Jul.17).
GBP/USD focus on BoE
The pound is picking up pace following further comments by MPC member D.Miles, who know expects UK consumer prices to return to target by year-end or Q1 2016. He has also added that policy normalization is closer and that rate hikes will be gradual over the next years.
These comments add to last week’s hawkish appreciations by Governor Carney, boosting market expectations of a rate hike sooner than previously anticipated and propping up a recovery in the sterling.
Market participants will closely watch today’s minutes in light of those comments, looking for clues regarding the timing of the BoE’s lift-off.
GBP/USD relevant levels
At the moment the pair is advancing 0.33% at 1.5607 and a break above 1.5672 (high Jul.17) would open the door to 1.5700 (psychological level) and then 1.5734 (high Jul.1). On the flip side, the immediate support aligns at 1.5550 (low Jul.22) ahead of 1.5500 (psychological level) and then 1.5450 (low Jul.17).