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5 May 2015
GBP/USD sees downside risks in the near-term – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, notes that although technicals favour the upside for GBP/USD, fundamental drivers suggest the pair remains biased lower in the near-term.
Key Quotes
“GBP is flat to yesterday’s close, having traded in a relatively narrow range, struggling to break back above its 100‐day MA at 1.5154. Technicals still favour upside but momentum has eased.”
“Fundamentally we see Thursday election as important, but to date the market is not pricing in a similar risk. Today’s construction PMI was disappointing, falling to 54.2. We are biased for near‐term GBP downside risk.”
Key Quotes
“GBP is flat to yesterday’s close, having traded in a relatively narrow range, struggling to break back above its 100‐day MA at 1.5154. Technicals still favour upside but momentum has eased.”
“Fundamentally we see Thursday election as important, but to date the market is not pricing in a similar risk. Today’s construction PMI was disappointing, falling to 54.2. We are biased for near‐term GBP downside risk.”