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.