Advancement in the GBP trend has stalled this week. Manufacturing and construction data missed this week and the Bank of England’s hold on monetary policy turned out to be a non-event. Sterling weakened briefly on the policy announcement but momentum never really took hold in either direction. Dips were bought but highs were also met with enough offers to keep price capped for another week. This stalling, sideways action is simply consolidation of the bull rally that has gained strength in the past month. Now as the 1st full week of trading of the 3rd quarter comes to a close, sterling remains in a tight range. Despite the tepid price action this week, sterling remains fundamentally strong. Between the US Federal Reserve and the European Central Bank, the BoE looks tremendously hawkish. Until that contrast changes, it is enough to keep sterling supported long term.
- BoE holds fire amid fears of sterling strength (CNBC)
- Time For a Long Term Play in Cable, No the Other One (Dragonfly Capital)
- Euro/Pound extends down trend (Futures Magazine)
- World Cup lifts UK consumer spending growth to 4-year high in second quarter – Visa (Reuters)
- Household debt serious threat to UK recovery, says Bank of England deputy (The Guardian)
- Why AUD and GBP are off to a Strong Start in July (Traders Log)
- End of month thoughts: World Currencies Cup (Piptrain.com)
- Goldman: Revising Our GBP Forecast Higher & Our EUR Forecast Lower (eFXnews)
- Lydia Idem Finkley: GBP/USD buying opportunity at 1.7060 (FXStreet)
- More Dips, Same Trend (FMFX)
- Healthy Dips Make for Healthy Trends (FMFX)