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28 Aug 2013
Flash: GBP/USD struggling to hold momentum – RBS
FXstreet.com (New York) - In the US, the FOMC July minutes continued to suggest that a September tapering of asset purchases is likely, and this appears to have provided the USD with some support against the GBP, suggests the RBS Research Team.
Key quotes
However, “this still remains dependent on labor market developments, leaving next week’s US Payrolls report a key focus for markets. This week, with Carney expected to do his best to jawbone UK rates lower, GBP/USD may struggle to maintain recent positive momentum.”
Meanwhile, “with last week’s flash Euro-zone PMIs also pointing to ongoing improvement in the Euro area economy and ECB comments that recent developments leave further rate cuts looking unlikely, EUR/GBP may have some upside.”
Key quotes
However, “this still remains dependent on labor market developments, leaving next week’s US Payrolls report a key focus for markets. This week, with Carney expected to do his best to jawbone UK rates lower, GBP/USD may struggle to maintain recent positive momentum.”
Meanwhile, “with last week’s flash Euro-zone PMIs also pointing to ongoing improvement in the Euro area economy and ECB comments that recent developments leave further rate cuts looking unlikely, EUR/GBP may have some upside.”