Explore eFXplus Derived Data That Drive Results
A Data Partner of:
Oct 25 - 11:55 AM

GBP/USD - COMMENT- Sterling Anchored By Its Thin Daily Cloud, Awaits Policy Clarity

By Paul Spirgel  —  Oct 25 - 10:24 AM

Sterling remains consolidative, hovering near flat at 1.3757, as it continues to straddle the thin daily cloud at 1.3767-78, unable to break out of its wider range between the 55-DMA by 1.3721, and the 200-DMA at 1.3851.

Sterling has traded in a tight 30-pip range in early NorAm between 1.3772 and 1.3742 as traders are somewhat confounded by remarks from BoE member Silvana Tenreyro who said she was in no hurry to raise rates, while she noted the inflationary effects of supply chain disruptions and their return to normalcy is a key uncertainty for the economy.

Tenreyro's reluctance to begin rate hikes, amid recent data misses in the UK, is helping keep GBP/USD bulls at bay, as sterling remains wary of testing resistance at last week’s triple top above 1.3830.

Also coming into play is the 50% Fibo of 2021's 1.4250-1.3412 range at 1.3431, which appears to be a line that traders are unwilling to cross, even with rising hawkish BoE tones BOEWATCH.

For now, the tug-of-war between hawks and transitory inflation doves, in the U.S. and UK, is likely to keep GBP/USD anchored nearby as traders await the Nov.
3 Fed meeting and the Nov.
4 BOE meeting for clues about U.S. and UK rate liftoffs.

For more click on FXBUZ

GBP Chart: Click here

Refinitiv IFR Research/Market Commentary


  • eFXplus
  • End-user license agreement (EULA)


  • About
  • Contact Us


  • Terms of Service
  • Privacy Policy
  • Disclaimer
© 2021 eFXdata · All Rights Reserved