Free Trial

GBP/USD Narrows Gap With Friday High into NY Crossover

GBP
  • GBP/USD improving to trade at close to the best levels of the day headed through to NY hours. This marks a near 70 pip bounce off the overnight lows, with spot now narrowing in on 1.2541. Improvement through here opens 1.2680, the current bull trigger at the May 10 high.
  • Outside of today's Empire Manufacturing survey, focus remains on Tuesday's UK labour market report, at which markets expect the jobless rate unchanged at 3.8%, and a small moderation for average weekly earnings (albeit countered by an expected tick higher for ex-Bonus stats). Markets currently priced between a further 25-50bps of hikes before year-end, putting the implied peak rate at 4.86% in September.
  • More sizeable strikes for GBP/USD are seen lower this week, with £424mln rolling off on 1.24 on Wednesday, and £476mln due at 1.25 on Friday.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.