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Aug 01 - 03:55 PM

GBP/USD - Unable To Hold Above 1.28 Post-BoE Cut, Dovish Policy Outlook Weighs

By Paul Spirgel  —  Aug 01 - 01:35 PM
  • GBP$ soft in NorAm afternoon, -0.85% at 1.2748; NorAm range 1.2840-1.2746

  • Pair whipsawed post-BoE 25bp cut down to 1.2752 then 1.2840 and back to lows

  • USD broadly firm, ex-JPY, despite UST yield dip; BoE cut tipped dovish

  • Futures mkts ramp up BoE 3rd 2024 cut expectations adds to GBP weakness

  • BoE caution a quick cure for sterling's wounds nL1N3JO0RE

  • Support at 1.2751 post-BoE cut low, 1.2706 daily cloud top, 1.2646 200-DMA

  • Res 1.2816 the 30-DMA, 1.2862 Thursday high, 1.2880 falling 21-DMA

Source:
Refinitiv IFR Research/Market Commentary

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