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23 Sep 2013
GBP/USD eases to 1.6030
FXstreet.com (Edinburgh) -Increasing risk aversion is now pushing the GBP/USD off recent peaks near 1.6060 to test the region of 1.6030.
GBP/USD looks to the US docket
The pair looks set to remain under pressure in the upcoming sessions via the greenback, as much is happening across the pond after last week’s FOMC meeting. Key manufacturing gauges and significant Fedspeak will be in the spotlight today, amidst increasing chatter regarding the US debt ceiling. According to Strategists Gareth Berry and Mansoor Mohi-uddin at UBS, “the UK current account deficit is still likely to be close to 4% of GDP in 2013 while the budget deficit will be around 7% of GDP according to the IMF. Structurally, a weaker exchange rate would help rebalance the economy while cushioning the impact of fiscal tightening. This trade-off between cyclical strength and structural weakness will likely be resolved by how successful the BoE's new forward guidance is in keeping interest rates low”.
GBP/USD levels to watch
The pair is now advancing 0.18% at 1.6036 facing the next hurdle at 1.6145 (high Sep.19) ahead of 1.6164 (high Sep.18) and finally 1.6182 (high Jan.11). On the flip side, a breach of 1.5893 (low Sep.18) would open the door to 1.5886 (low Sep.17) and then 1.5869 (low Sep.16).
GBP/USD looks to the US docket
The pair looks set to remain under pressure in the upcoming sessions via the greenback, as much is happening across the pond after last week’s FOMC meeting. Key manufacturing gauges and significant Fedspeak will be in the spotlight today, amidst increasing chatter regarding the US debt ceiling. According to Strategists Gareth Berry and Mansoor Mohi-uddin at UBS, “the UK current account deficit is still likely to be close to 4% of GDP in 2013 while the budget deficit will be around 7% of GDP according to the IMF. Structurally, a weaker exchange rate would help rebalance the economy while cushioning the impact of fiscal tightening. This trade-off between cyclical strength and structural weakness will likely be resolved by how successful the BoE's new forward guidance is in keeping interest rates low”.
GBP/USD levels to watch
The pair is now advancing 0.18% at 1.6036 facing the next hurdle at 1.6145 (high Sep.19) ahead of 1.6164 (high Sep.18) and finally 1.6182 (high Jan.11). On the flip side, a breach of 1.5893 (low Sep.18) would open the door to 1.5886 (low Sep.17) and then 1.5869 (low Sep.16).