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May 09 - 03:55 PM

GBP/USD - Shrugs Off Dovish BoE Rate Hold; Regains 1.25 After US Claims Rise

By Paul Spirgel  —  May 09 - 01:55 PM
  • GBP$ firm into NorAm close, +0.17% at 1.2520; Thursday range 1.2523-1.2446

  • Pair sank to 2-wk low 1.2446 post-dovish BoE hold; Ramsden flips to cut tack

  • U.S. claims rise lifts more-dovish Fed view, UST yields dip aids GBP bid

  • BoE, claims whipsaw leaves sterling fragile nL1N3HC1I0

  • U.S., UK CPI May 15/22 in focus for more clarity on cenbank policy path

  • IRPR indicating June cut odds near 50%, Aug fully priced, -57bp by Dec MPC

  • Fed rate view less dovish, 1st cut seen in September- 20% odds, -46bp by Dec

  • Res 1.2524 the 30-DMA, 1.2544 200-DMA, 1.2593 May 6 high

  • A close above 1.2596, 50% Fib of 1.2894-1.2299 may add to bullish fervor

Source:
Refinitiv IFR Research/Market Commentary

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