Pound Is Bound For Rise
We knew it from the moment the MPC uttered: “…some withdrawal of monetary stimulus is likely to be appropriate over the coming months” - the pound was bound to rise.
Cable managed to jump to 1.3616 hitting fresh 14-month high on the comments of the BOE member. Gertjan Willem Vlieghe commented that bank rates will have to rise soon and may need more than one increase. He even hinted on the term, saying the appropriate time “might be as early as in the coming months.”
The comments added fuel to the fire after the BOE meeting drove GBPUSD two figures higher. The cumulative appreciation during the last two days is almost 15%. And it looks like it’s not the end.
The break above 1.33 started the new era for the pair – long-term uptrend supported by strong fundamentals, and more hawkish BOE stance. Until Brexit woes arise again, the pair may reach 1,38 area. And weak US data will only speed up the move.
Cable managed to jump to 1.3616 hitting fresh 14-month high on the comments of the BOE member. Gertjan Willem Vlieghe commented that bank rates will have to rise soon and may need more than one increase. He even hinted on the term, saying the appropriate time “might be as early as in the coming months.”
The comments added fuel to the fire after the BOE meeting drove GBPUSD two figures higher. The cumulative appreciation during the last two days is almost 15%. And it looks like it’s not the end.
The break above 1.33 started the new era for the pair – long-term uptrend supported by strong fundamentals, and more hawkish BOE stance. Until Brexit woes arise again, the pair may reach 1,38 area. And weak US data will only speed up the move.
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