Pound Sterling (GBP) prolonged its run larger, to greater than 3-year excessive as exercise, inflation and PMI companies information shocked to the upside. Pair was final at 1.3565, OCBC’s FX analysts Frances Cheung and Christopher Wong notice.
Additional upside seemingly
“Elsewhere, a softer USD development additionally helped. We had earlier mentioned the GBP efficiency has been surprisingly resilient amongst the DM FX and stays so. This may be attributed to better-than-expected development momentum (mirrored in latest GDP, retail gross sales, PMI information), much less dovish than anticipated BoE rhetoric in addition to the US-UK commerce deal (removes uncertainty factor).”
“We additionally reckon the USD diversification/reallocation flows can even profit GBP amongst different reserve FX. Each day momentum on each day chart intact whereas RSI rose. Additional upside seemingly. Subsequent resistance at 1.3660, 1.3750 ranges. Assist at 1.3450 (earlier double prime, now turned help), 1.3330 (21 DMA).”
