Sterling sits on a fence depending on which currency you trade it against. After hitting new 2013 lows last week, the $GBPUSD has since rallied as high as 1.5220. Unable to get back below 1.50, there is a threat that cable rallies even higher. The $GBPAUD, after hitting new 2013 highs, has since retreated back to 1.6350. The $EURGBP is enjoying a nice, albeit slow, breakout to the upside reaching as high as 0.8700. While this week’s data threatens to be GBP-negative, particularly the release of the Bank of England meeting minutes, pay attention to price action. Lower prices may simply translate to better buy opportunities for rallies. With many GBP bears in the market, the squeeze higher could come slowly and painfully. Be aware.
- Carney BOE Guidance Seen Pushing QE on Back Burner (Bloomberg)
- BOE’s Miles : Well aware of rate rise impact on households (Forex Live)
- Rising import costs putting pressure on small businesses (Financial Director)
- GBPUSD vs. UK-US 2yr yield spread (StockTwits) [CHART]
- GBPUSD Update (50’s Blog) [CHART]
- Sellers Strong But May Need More Time (FaithMightFX)
- GBPUSD stalling at hourly trend line after US retail sales rally (Forex Trading TV) [VIDEO]
- Global PMI Data June 2013 (Avondale Asset Management) [CHART]
- The UK economy’s looking up – but no one’s told manufacturers (The Guardian)