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18 Mar 2014
GBP/USD tucking under the 1.66 handle
FXStreet (Guatemala) - GBP/USD has extended the down side and in the North American session the pair is finding support on 1.6580.
US CPI data was relatively in line with expectations, although February’s year on year read slightly lower at 1.1% missing the consensus of 1.2%. Building permits were up at 1.018m vs 0.960 expected. Meanwhile, from earlier, Strategists at TD Securities noted that the HM Treasury announced two new Deputy Governors for the BoE this morning. “Ben Broadbent had been the favorite to replace Charlie Bean as Deputy Governor for Monetary Policy, and will start in that role on July 1, which will require a search for a new external member of the MPC to replace Broadbent's spot. Nemat Shafik comes from the IMF and replaces Paul Fisher as Deputy Governor for Markets and Banking, to start August 1. Both will sit on the MPC and FPC, with Nemat Shafik representing the BoE at international functions and provides the first woman on the MPC since Kate Barker in 2010. She also brings her IMF experience managing the European response, which was something the BoE was keen to bring in. In terms of her voting bias, you really don't have much to go on as she has never been in that role, though the expectation would be a cautious attitude on Europe, which remains a large downside risk for much of the MPC. The final piece of the voting puzzle for the coming year, when the BoE is expected to begin tightening, will have to wait for the appointment of a new external member. Both Broadbent and Shafik likely become the favourites to replace Carney as Governor at this stage when his term ends in 2018”.
GBP/USD Levels
The 20 DMA is 1.6667, the 50 DMA is 1.6552 and the 200 DMA is 1.6016. RSI (14) reads 37.51. Supports are ascending from 1.6538 and 1.6565. Spot is 1.6580 while resistances are 1.6605, 1.6667, 1.6689, 1.6719 and 1.6787.
US CPI data was relatively in line with expectations, although February’s year on year read slightly lower at 1.1% missing the consensus of 1.2%. Building permits were up at 1.018m vs 0.960 expected. Meanwhile, from earlier, Strategists at TD Securities noted that the HM Treasury announced two new Deputy Governors for the BoE this morning. “Ben Broadbent had been the favorite to replace Charlie Bean as Deputy Governor for Monetary Policy, and will start in that role on July 1, which will require a search for a new external member of the MPC to replace Broadbent's spot. Nemat Shafik comes from the IMF and replaces Paul Fisher as Deputy Governor for Markets and Banking, to start August 1. Both will sit on the MPC and FPC, with Nemat Shafik representing the BoE at international functions and provides the first woman on the MPC since Kate Barker in 2010. She also brings her IMF experience managing the European response, which was something the BoE was keen to bring in. In terms of her voting bias, you really don't have much to go on as she has never been in that role, though the expectation would be a cautious attitude on Europe, which remains a large downside risk for much of the MPC. The final piece of the voting puzzle for the coming year, when the BoE is expected to begin tightening, will have to wait for the appointment of a new external member. Both Broadbent and Shafik likely become the favourites to replace Carney as Governor at this stage when his term ends in 2018”.
GBP/USD Levels
The 20 DMA is 1.6667, the 50 DMA is 1.6552 and the 200 DMA is 1.6016. RSI (14) reads 37.51. Supports are ascending from 1.6538 and 1.6565. Spot is 1.6580 while resistances are 1.6605, 1.6667, 1.6689, 1.6719 and 1.6787.