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16 Dec 2014
GBP/USD hits fresh daily high on Upbeat BOE Banks Stress test results
FXStreet (Mumbai) - Cable remains advance against the US dollar snapping losses from the previous session on better than expected Bank of England’s Bank Stress test results.
The GBP/USD pair posted fresh daily at 1.5666 levels, up +0.18%, on the day. The pound remains supported against the US dollar after the stress tests results showed only one bank out of eight tested to have failed the Bank of England’s (BoE) stress tests.
Commenting on the results, BoE Governor Mark Carney said: "The stress tests completes out capital framework by informing judgments about the appropriate size of capital buffers for individual firms and for the system as a whole … This was a demanding test. The results show that the core of the banking system is significantly more resilient, that it has the strength to continue to serve the real economy even in a severe stress, and that the growing confidence in the system is merited."
The key consideration in the stress tests was whether a bank's common equity Tier 1 (CET1) was projected to fall below the 4.5% threshold.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5682 (Dec 8 High) above which gains could be extended to 1.5697 (Dec 5 High) levels. On the flip side, support is seen at 1.5624 (Dec 9 Low), below which it could extend losses to 1.5599 (Dec 15 Low) levels.
The GBP/USD pair posted fresh daily at 1.5666 levels, up +0.18%, on the day. The pound remains supported against the US dollar after the stress tests results showed only one bank out of eight tested to have failed the Bank of England’s (BoE) stress tests.
Commenting on the results, BoE Governor Mark Carney said: "The stress tests completes out capital framework by informing judgments about the appropriate size of capital buffers for individual firms and for the system as a whole … This was a demanding test. The results show that the core of the banking system is significantly more resilient, that it has the strength to continue to serve the real economy even in a severe stress, and that the growing confidence in the system is merited."
The key consideration in the stress tests was whether a bank's common equity Tier 1 (CET1) was projected to fall below the 4.5% threshold.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5682 (Dec 8 High) above which gains could be extended to 1.5697 (Dec 5 High) levels. On the flip side, support is seen at 1.5624 (Dec 9 Low), below which it could extend losses to 1.5599 (Dec 15 Low) levels.