GBP/USD: Supported Despite Soft UK Data; Dips A Buy – Credit Agricole


The British pound suffered from a drop in the manufacturing output but remained afloat. What’s next?

Here is their view, courtesy of eFXnews:

Credit Agricole Research discusses GBP outlook and notes that sterling has been well supported as of late, regardless of weaker than expected economic data releases.

“After all, somewhat weaker growth momentum failed to dampen medium-term inflation expectations as for instance implied by 5Y inflation swaps. In addition, BoE members continued to make a case of tightening monetary policy further.

We believe this view will be shared by a majority of central bank members and such prospects should lay the ground of the BoE tightening monetary policy further as soon as next month.

As a result to the above outlined conditions we stay in favour of buying GBP dips,” CACIB argues.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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