15 Sep 2015
GBP/USD neutral in the near term – Scotiabank
FXStreet (Edinburgh) - Eric Theoret, Currency Strategist at Scotiabank, reiterated the neutral view of the pair in the near term.
Key Quotes
“While the broader MPC has widened its focus beyond wages to the pass-through of exchange rate-driven disinflation, tighter labor markets and pay growth were key considerations for MPC member McCafferty’s tightening bias and hike vote last week”.
“Both headline and ex-bonus measures of average weekly earnings are expected to show an accelerated pace of growth, with upside surprises presenting an important risk for some remaining neutral members of the MPC”.
“Momentum signals are conflicted and close to neutral, a second consecutive doji is forming around 1.5430 with a narrowed inside day adding to uncertainty”.
“Recent gains have been restrained above 1.5450 with short-lived declines below 1.5420. Resistance is expected above the 21 day MA 1.5457”.
Key Quotes
“While the broader MPC has widened its focus beyond wages to the pass-through of exchange rate-driven disinflation, tighter labor markets and pay growth were key considerations for MPC member McCafferty’s tightening bias and hike vote last week”.
“Both headline and ex-bonus measures of average weekly earnings are expected to show an accelerated pace of growth, with upside surprises presenting an important risk for some remaining neutral members of the MPC”.
“Momentum signals are conflicted and close to neutral, a second consecutive doji is forming around 1.5430 with a narrowed inside day adding to uncertainty”.
“Recent gains have been restrained above 1.5450 with short-lived declines below 1.5420. Resistance is expected above the 21 day MA 1.5457”.