GBP/USD: Failure at 1.3175/50 to trigger additional falls to 1.2850/25 – Westpac

Sterling is vulnerable into a “finely balanced” MPC meeting, but renewed restrictions may tilt MPC to be on hold. Failure to rebound off 1.3150-75 ris  |  09/12/2021 07:39

Sterling is vulnerable into a “finely balanced” MPC meeting, but renewed restrictions may tilt MPC to be on hold. Failure to rebound off 1.3150-75 risks further slides to 1.2850, economists at Westpac report.

UK toughening up restrictions

“Domestic political stress has accelerated the decision to adopt more stringent covid restrictions. The renewed restrictions also highlight the uncertainties referenced by Dep. Gov. Broadbent this week ahead of MPC’s ‘finely balanced’ meeting on Dec 16th and may well be sufficient to stay the MPC’s hand.”

“MPC will be monitoring how UK’s labour market reacts as the distortions from the now-ended furlough scheme unwind. A slide in UK’s claimant rate could be a signal of increasing labour market tightness and inflation risks. However, renewed restrictions should outweigh data near-term.”

“Renewed restrictions should outweigh data near term. GBP/USD has met 1.3150-75 retracement support. Failure to sustain rebounds (stops above 1.3300?) could trigger slides towards 1.2825-50.”

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com