Forex Strategy Video: GBPUSD Bull Trend Dependent on Flagging Rate Forecast
• Rate expectations for the UK have swelled the past months, driving GBPUSD and the sterling higher
• Fears of a triple dip UK recession and BoE rate cut in early 2013 have shifted to growth and hike hope
• Key data in the next 48 hours can help set the UK's place in the global monetary policy scheme
Do you want to trade an individual currency and/or broader trend developments? Use the Mirror Trader Currency Baskets to place a trade.
Much of the attention on monetary policy speculation has focused on the Fed Taper or BoJ stimulus upgrade. But speculation may be more mature for the BoE and pound. Where the central bank was expected to respond to an impending triple-dip recession with more stimulus in early 2013, the market is now trying to determine when the first hike will come...and the expectations are ambitious. Given the aggressive, hawkish lean by the market; there may not be much room for traders to entertain doubt without seeing the pound correct sharply. We discuss this balance and important, upcoming data (inflation, employment) data in today's Strategy Video.
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.