The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
GBP/USD sees directional stimulus
Over the last few days GBP/USD has received directional stimulus from a number of different places. Wednesday’s Federal Open Market Committee statement was a touch more dovish as the anticipated start date for US interest rate rises was edged a little further down the road. The IMF report on its anticipated global growth then followed, which gave the UK economy a thumbs up while lowering expectations for much of the eurozone. Considering the eurozone is the UK’s largest trading partner, you can’t help but wonder how long it will be before its issues cross the channel.
The short lived move above $1.62 looks unlikely to be tested again in the short-term and a move back down below $1.60 looks more likely.