Trading Forex and CFDs is risky
Read HotForex Daily Market Analysis

Cable breaks over 13600 as dove becomes hawk

Market Analysis

GBPUSD, H1                    

Sterling was boosted as BoE dove turned hawk, with MPC member Vlieghe saying earlier that a hike could come “as early as in the coming months. This was notable as Vlieghe has been one of the most dovish members on the policy committee, being the only dissenter in favour of cutting rates in July 2016 (before the Brexit vote), for instance. Markets are now discounting a rate hike at the November MPC meeting, when the next inflation report is due. Cable clocked a 15-month high over 1.3600, and is presently up 1.5% on the day, and by 2.8% over the last two days, which is the sharpest gain sterling has seen in over year. EURGBP is down by 1.2%, making a two-month low at 0.8781. GBPJPY trades north of 151.20, last Friday we traded at 141.00.

Let the trend be your friend for now, however, Cable would need to recover to 1.4800 to reverse the losses seen in the wake of the vote to leave the EU last July, which no one expects will happen given discouraging lack of progress in Brexit negotiations so far. The next round of talks were postponed by a week to allow both sides “more time” with Mrs May scheduled for a key Brexit speech next week in Italy.

 

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Stuart Cowell

Senior Market Analyst

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.