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17 Feb 2014
Flash: EUR/GBP broke below key support - BTMU
FXStreet (Guatemala) - Lee Hardman, currency analyst at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained that the pound continues to strengthen following the release last week of the BoE’s latest Quarterly Inflation Report and updated forward guidance which has served to reinforce investor expectations that the BoE will begin to raise its key policy rate ahead of the other major central banks.
Key Quotes:
“EUR/GBP has broken below key support at around the 0.8200-level encouraging accelerated pound strength in the near-term”.
“The release of the latest Rightmove house price survey which revealed a further solid monthly increase of 3.3% in February has also provided support for the pound".
"BoE Governor Carney in an interview yesterday reiterated that interest rate
increases will be “limited and gradual” with some very big persistent
forces likely to conspire collectively to keep the level of interest rates
down”.
“However with other major central banks not yet even seriously
considering rate hikes, even the prospect of very gradual and modest BoE
rate hikes ahead is likely to continue boosting the relative attractiveness
of the pound further”.
Key Quotes:
“EUR/GBP has broken below key support at around the 0.8200-level encouraging accelerated pound strength in the near-term”.
“The release of the latest Rightmove house price survey which revealed a further solid monthly increase of 3.3% in February has also provided support for the pound".
"BoE Governor Carney in an interview yesterday reiterated that interest rate
increases will be “limited and gradual” with some very big persistent
forces likely to conspire collectively to keep the level of interest rates
down”.
“However with other major central banks not yet even seriously
considering rate hikes, even the prospect of very gradual and modest BoE
rate hikes ahead is likely to continue boosting the relative attractiveness
of the pound further”.