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21 May 2014
Strong data continues to prop up GBP - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, observes the bullish stance in GBP is backed by recent positive data releases.
Key Quotes
"On There was some classic buy the rumour sell the fact activity in GBPUSD yesterday morning as we saw GBPUSD quickly rally half a cent ahead of the UK CPI release, only to sell off and settle only a little higher after the number was out. Meanwhile, pre data strength took GBPEUR to new 2014 highs printing above 1.2300 as the uptrend continues into next month's ECB meeting. CPI inflation, the Bank of England’s targeted price measure, climbed to 1.8% in April from 1.6% in March, rising above the 1.7% market consensus and our own 1.6% forecast, largely driven by increases in travel and fuel costs."
Key Quotes
"On There was some classic buy the rumour sell the fact activity in GBPUSD yesterday morning as we saw GBPUSD quickly rally half a cent ahead of the UK CPI release, only to sell off and settle only a little higher after the number was out. Meanwhile, pre data strength took GBPEUR to new 2014 highs printing above 1.2300 as the uptrend continues into next month's ECB meeting. CPI inflation, the Bank of England’s targeted price measure, climbed to 1.8% in April from 1.6% in March, rising above the 1.7% market consensus and our own 1.6% forecast, largely driven by increases in travel and fuel costs."