Intra-Day Market Moving News and Views GBP/USD

Intra-Day Market Moving News and Views
17 Dec 2014   09:46GMT

GBP/USD - ...... The British pound remained under pressure in Asia and continued to weaken throughout the session. Price eventually hit a low at 1.5677/78 in early European morning, however, cable pared its losses and rebounded strongly to 1.5729 after the release of UK average earnings and BoE minutes.

Bids are now seen at 1.5700/10 and more below at 1.5680/90 with stops building up below there whilst initial offers are noted at 1.5750/60, suggesting buying on dips is favored.

The BoE has focused more on wage growth as it considers when to start raising rates. Data due to be released at the same time of the minutes on Wed was expected to show earnings rising faster than inflation for a 2nd month in Oct.

The minutes showed the majority who voted to keep rates on hold thought faster pay growth would be required to meet the 2% inflation target.

However, those in favour of a rate rise thought this was already in train.

Financial market investors have pushed back their bets on the timing of the next interest rate hike markedly over the past few months, n are now pricing in the first move late next year.

Last month the BoE issued forecasts that showed British inflation will likely fall below 1% in the next 6 months, while Carney suggested markets were right to rule out an interest rate hike any time soon.