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6 Aug 2013
Flash: Sterling could test 200 d ma 1.5545 - BBH
FXstreet.com (Barcelona) - Marc Chandler, Global Head of Currency Strategy at BBH notes that Sterling traders are cautious of a surprise from Carney.
Key Quote:
“We think caution of a surprise by Carney has prevented sterling from benefiting from the improved economic data and the modest backing up of interest rates”.
“ Barring, then, a significant surprise from Carney, we suspect sterling could trade higher; recover further against the euro, where the ECB is likely to keep rates low for longer (and risk renewed tensions after the summer holidays and German election)”.
“Against the dollar, sterling can test the late July high near $1.5435. A break of that area, which also corresponds to a retracement objective from the June 17 peak near $1.5750 would likely encourage a test on the 200-day moving average seen near $1.5545”.
Key Quote:
“We think caution of a surprise by Carney has prevented sterling from benefiting from the improved economic data and the modest backing up of interest rates”.
“ Barring, then, a significant surprise from Carney, we suspect sterling could trade higher; recover further against the euro, where the ECB is likely to keep rates low for longer (and risk renewed tensions after the summer holidays and German election)”.
“Against the dollar, sterling can test the late July high near $1.5435. A break of that area, which also corresponds to a retracement objective from the June 17 peak near $1.5750 would likely encourage a test on the 200-day moving average seen near $1.5545”.