Strategy Video: GBPJPY and EURGBP Face More 2015 Drama than Cable
• Yet, further declines in its own rate and growth forecast could trip up this bullish performer
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GBPUSD has carved out a strong and surprisingly consistent bull trend through the first half of 2014 followed by an equally impressive bear run in the second half. The Cable is unique in that its components - the Pound and Dollar - are on such even fundamental ground. Their respective growth paths are robust, each is considered a safe haven for different reasons, and the market is intent on forecasting rate forecasts from both the BoE and Fed. Given this balance, the pair's bearings will be decided on the most fluid and contested of these measures - interest rates. For those looking for more dramatic price action and fundamental change though, pairs like GBPJPY, EURGBP and GBPAUD can leverage these themes to more exceptional breakouts, trends and reversals in 2015. We focus on the Pound's outlook in today's Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.