11 Feb 2015
GBP outperforms on a probable hawkish BOE’s QIR report – TDS
FXStreet (Barcelona) - Shaun Osborne, Chief FX Strategist at TD Securities, views that with markets speculating a hawkish outcome to BOE’s QIR report tomorrow, GBP/CAD might make a move upwards towards 2.02.
Key Quotes
“The GBP is out-performing today and has been the top-performer over the past week as markets position for a hawkish outcome to Thursday’s Quarterly Inflation Report.”
“Our base case is that the outcome will indeed provide support for the GBP as the Bank focuses on the positive outlook for inflation, based on the stimulus for consumption and growth from oil and looks through near-term inflation weakness.”
“We like the GBP’s outlook on the crosses—GBPCAD moving to new highs above 1.93 today keeps the tone here very positive, for example. We target a move up to 2.02 and think that a sustained push above 1.92 (major retracement resistance) through the close of the week will keep the technical position here very bullish from a longer-term perspective.”
Key Quotes
“The GBP is out-performing today and has been the top-performer over the past week as markets position for a hawkish outcome to Thursday’s Quarterly Inflation Report.”
“Our base case is that the outcome will indeed provide support for the GBP as the Bank focuses on the positive outlook for inflation, based on the stimulus for consumption and growth from oil and looks through near-term inflation weakness.”
“We like the GBP’s outlook on the crosses—GBPCAD moving to new highs above 1.93 today keeps the tone here very positive, for example. We target a move up to 2.02 and think that a sustained push above 1.92 (major retracement resistance) through the close of the week will keep the technical position here very bullish from a longer-term perspective.”