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24 Dec 2013
GBP/USD tests 1.6320 and bounces back
FXstreet.com (Buenos Aires) - Ever since the week started the GBP/USD has been mostly weak, albeit trading in a tight range. As of today the pair tested 1.6320 before bouncing back some, trading now below the 1.6350 level. With a weekly low of 1.6314, the pair trades some 150 pips away from its year high of 1.6483 but also far above the year low posted last July at 1.4812, maintaining the midterm bullish tone.
Carney optimism = bullish Pound
During this ending 2013, UK growth has been maybe the most outstanding among troubled big economies: annual growth expectations are at 1.4%, twice what the FMI projected earlier this year, unemployment rate fell to 7.4% and GDP has been ticking up, despite is still far below pre 2007 crisis levels.
For the most, BOE’s governor Mark Carney has been exuding optimism, supporting Pound advances across the board during this second half of the year, rejecting fears of economic stagnation albeit warning the UK economy is “a long way from normal” earlier this month. Nevertheless, market has been buying Pound on dips, and with fundamental data backing up the ride, there’s little room for downward movement in GBP/USD, as Pound remains among the stronger, if not the strongest, currencies of the FX board.
Carney optimism = bullish Pound
During this ending 2013, UK growth has been maybe the most outstanding among troubled big economies: annual growth expectations are at 1.4%, twice what the FMI projected earlier this year, unemployment rate fell to 7.4% and GDP has been ticking up, despite is still far below pre 2007 crisis levels.
For the most, BOE’s governor Mark Carney has been exuding optimism, supporting Pound advances across the board during this second half of the year, rejecting fears of economic stagnation albeit warning the UK economy is “a long way from normal” earlier this month. Nevertheless, market has been buying Pound on dips, and with fundamental data backing up the ride, there’s little room for downward movement in GBP/USD, as Pound remains among the stronger, if not the strongest, currencies of the FX board.