Sterling continued its ascent on Wednesday as the post-Trump inauguration environment remained less austere than expected, though further gains may be elusive if the BoE guides to a less hawkish policy path at its Feb. 6 meeting.
UK fiscal uncertainties have also abated amid falling global yields, allowing GBP/USD to distance itself from its year-to-date low by 1.21.
Futures show markets expect UK rates to remain well above those in other major economies, supporting the pound versus the euro, Aussie and the Canadian dollar. However, the Fed is expected to keep rates steady until June while the BoE cut twice during that period, eroding the pound's yield advantage and potentially hindering further GBP/USD gains.
With the UK economy feeling the deleterious effects high yields, the BoE appears ready, as long as falling inflation permits, to ease to stimulate growth, which could put the Jan. 13 low at 1.21 in focus.
The recent break above the 10-DMA at 1.2260 is helping develop a base, but the real test will be near the falling 30-DMA at 1.2447 and key Fib at 1.2455. A rise above these levels will put the daily cloud, spanning 1.2665-1.2794, and the Dec. 6 trend high at 1.2811 in focus.
For more click on FXBUZ
Sterling Chart: https://tmsnrt.rs/4avE3Sw
(Paul Spirgel is a Reuters market analyst. The views expressed are his own)
((paul.spirgel@thomsonreuters.com))
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。