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5 Aug 2014
GBP/USD broke above 1.6830 - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, underlines the recent surpass of the key 1.6830 level.
Key Quotes
"There wasn’t a great deal of price movement in currencies yesterday but GBPUSD did manage to buck the recent trend of GBP weakness and climb back above the key technical level of 1.6830, assisted by EURUSD remaining firm above 1.3400 since Friday morning. We have the US ISM non-manufacturing figure this afternoon which the market will be paying attention to, in light of the strong trend of US data in recent weeks."
"The stronger US figures in the past couple of months are not only having an impact on the headline USD rate and there could be stronger tremors felt in markets on the back of it. Stay with us here; stronger US data has caused investors to re-evaluate their expectations about when the Fed will tighten monetary policy and as a result we have seen an orderly exodus from equities and more of a bid tone in US treasury yields (as investors position themselves for rate hikes in the US)".
"In theory, this is supportive of longer term dollar strength but this remains very dependent on the health of US data and therefore we expect the focus to remain intense on the likes of jobs numbers, GDP and PMI’s."
Key Quotes
"There wasn’t a great deal of price movement in currencies yesterday but GBPUSD did manage to buck the recent trend of GBP weakness and climb back above the key technical level of 1.6830, assisted by EURUSD remaining firm above 1.3400 since Friday morning. We have the US ISM non-manufacturing figure this afternoon which the market will be paying attention to, in light of the strong trend of US data in recent weeks."
"The stronger US figures in the past couple of months are not only having an impact on the headline USD rate and there could be stronger tremors felt in markets on the back of it. Stay with us here; stronger US data has caused investors to re-evaluate their expectations about when the Fed will tighten monetary policy and as a result we have seen an orderly exodus from equities and more of a bid tone in US treasury yields (as investors position themselves for rate hikes in the US)".
"In theory, this is supportive of longer term dollar strength but this remains very dependent on the health of US data and therefore we expect the focus to remain intense on the likes of jobs numbers, GDP and PMI’s."