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10 Feb 2015
BOE’s QIR might support GBP/USD – Growth Aces
FXStreet (Barcelona) - The Growth Aces Research Team shares the trade setup for GBP/USD, further adding that Thursday’s BOE’s inflation report might be supportive for the cable as markets might reassess its rate hike expectations.
Key Quotes
“Attention will now shift to Thursday's Bank of England inflation report, which is likely to update growth and inflation prospects and could prompt investors to revise their expectations of when a first post-crisis rate hike will come.”
“The BOE had to add many additional factors to its forecasts – plunge in oil prices, ECB’s QE and signs of economic recovery in the Euro zone. There is no doubt that the BOE will lower its near-term inflation forecast as a result of the oil price fall, but the medium-term forecast could be raised slightly.”
“In our opinion this would be a factor supporting the GBP, because the market may reassess its expectations for a rate hike”
“In our opinion current expectations for a hike in the middle of 2016 are too far in the future.”
“GBP/USD trading strategy: long at 1.5280, target 1.5480, stop-loss 1.5185”
Key Quotes
“Attention will now shift to Thursday's Bank of England inflation report, which is likely to update growth and inflation prospects and could prompt investors to revise their expectations of when a first post-crisis rate hike will come.”
“The BOE had to add many additional factors to its forecasts – plunge in oil prices, ECB’s QE and signs of economic recovery in the Euro zone. There is no doubt that the BOE will lower its near-term inflation forecast as a result of the oil price fall, but the medium-term forecast could be raised slightly.”
“In our opinion this would be a factor supporting the GBP, because the market may reassess its expectations for a rate hike”
“In our opinion current expectations for a hike in the middle of 2016 are too far in the future.”
“GBP/USD trading strategy: long at 1.5280, target 1.5480, stop-loss 1.5185”