This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Cable drifting lower
Last night’s success for the Republican party was not a complete surprise, and the moves in GBP/USD have been subtle rather than reactive.
Having briefly popped its head above the $1.60 level, it is once again drifting lower. With trader’s conscious of tomorrow’s Bank of England interest rate event and the accompanying Monetary Policy Committee statement, it is unlikely we will see the GBP/USD rate move too far from here.
Before the excitement of tomorrow we are still to see the latest services PMI figures for the UK, and regardless of the improvements seen in manufacturing this is still a sizeable contributor to the general health of the UK.
Over the next 24 hours it is likely that $1.60 will continue to be a cap on the GBP/USD rate, but sentiment is unlikely to see the spot levels move too far away from it.