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6 Mar 2014
GBP/USD pushing higher near 1.6740
FXStreet (Edinburgh) - The sterling is following the rest of the risk-associated assets on Thursday, lifting the GBP/USD to the area of 1.6740.
GBP/USD within the weekly range
The sterling kept the composure after the BoE left its monetary policy unchanged in today’s meeting (refi rate at 0.5% and purchase facility at £375 billion), consolidating its recent ascent beyond the 1.6700 handle. According to analysts at BBH, “About GBP8.2 bln of a bond that it bought in its QE operations is set to mature soon (March 14)… It needs to make a deliberate choice to reinvest it, otherwise its GBP375 bln of holdings will decline and its balance sheet will shrink. Market participants would likely see this as the beginning of the passive unwind of QE and a prelude to a rate hike and possibly push back against BOE's forward guidance”.
GBP/USD levels to watch
At the moment the pair is advancing 0.12% at 1.6736 with the initial up-barrier at 1.6753 (high Mar.6) followed by 1.6769 (high Feb.28) and then 1.6800 (psychological level). On the downside, a breakdown of 1.6682 (10-d MA) would target 1.6656 (low Mar.5) en route to 1.6640 (low Mar.4).
GBP/USD within the weekly range
The sterling kept the composure after the BoE left its monetary policy unchanged in today’s meeting (refi rate at 0.5% and purchase facility at £375 billion), consolidating its recent ascent beyond the 1.6700 handle. According to analysts at BBH, “About GBP8.2 bln of a bond that it bought in its QE operations is set to mature soon (March 14)… It needs to make a deliberate choice to reinvest it, otherwise its GBP375 bln of holdings will decline and its balance sheet will shrink. Market participants would likely see this as the beginning of the passive unwind of QE and a prelude to a rate hike and possibly push back against BOE's forward guidance”.
GBP/USD levels to watch
At the moment the pair is advancing 0.12% at 1.6736 with the initial up-barrier at 1.6753 (high Mar.6) followed by 1.6769 (high Feb.28) and then 1.6800 (psychological level). On the downside, a breakdown of 1.6682 (10-d MA) would target 1.6656 (low Mar.5) en route to 1.6640 (low Mar.4).