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Nov 08 - 03:55 PM

GBP/USD - Dips Into Weekend As Dovish Fed Policy Outlook Ebbs

By Paul Spirgel  —  Nov 08 - 01:35 PM
  • GBP$ slides into NorAm close, -0.61% at 1.2906; Friday range 1.2988-1.2885

  • Front-end UST yields a touch higher after less-dovish Fed Thursday

  • STIR futures markets still calling for Dec Fed cut, albeit odds pared

  • BoE less-dovish outlook now pricing higher terminal UK rates into YE 2025

  • Sterling's wild ride tempers after election, c.bank volatility passes

  • GBP spec long still high, w/yearend approaching may start to see selling

  • GBP$ supt 1.2901 Fri low, 1.2835 Nov 6 low, 1.2816 the 200-DMA

  • Res 1.2933 the 55-HMA, 1.2988 Friday high, 1.3009 post-election high Nov 7

Source:
Refinitiv IFR Research/Market Commentary

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