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16 Mar 2015
GBP/USD at the mercy of the FOMC this week
FXStreet (Guatemala) - GBP/USD is currently at 1.4837 with a high of 1.4854 and a low of 1.4736.
GBP/USD is moving back onto the 1.48 handle and in doing so it has made a minor recovery of the yearly lows made at the end of last week through 2013 low (1.4813) when the market piled back into the greenback. The US dollar was very strong last week after some initial profit taking and chatter of the implications around a strong dollar in a disinflationary environment and against a lacklustre global economic backdrop. But this was short lived and eventually the dollar took a number of majors down to the depths of fresh lows even on very little data driven sentiment.
This week however, we have the FOMC to look forward to and Yellen's outlook will be heard. For the mean time, technically, closes below the aforementioned 2013 lows here introduces scope to 1.4291/29, the 78.6% retracement of the move from 2009 and the 2010 low as noted by Karen Jones, chief analyst at Commerzbank.
GBP/USD is moving back onto the 1.48 handle and in doing so it has made a minor recovery of the yearly lows made at the end of last week through 2013 low (1.4813) when the market piled back into the greenback. The US dollar was very strong last week after some initial profit taking and chatter of the implications around a strong dollar in a disinflationary environment and against a lacklustre global economic backdrop. But this was short lived and eventually the dollar took a number of majors down to the depths of fresh lows even on very little data driven sentiment.
This week however, we have the FOMC to look forward to and Yellen's outlook will be heard. For the mean time, technically, closes below the aforementioned 2013 lows here introduces scope to 1.4291/29, the 78.6% retracement of the move from 2009 and the 2010 low as noted by Karen Jones, chief analyst at Commerzbank.