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28 Jan 2015
Dovish Fed may push GBP/USD to 1.54 levels – FXStreet
FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Omkar Godbole, GBP/USD may rise to 1.54 levels if the tone of the Fed’s statement comes out dovish, expecting markets to witness a correction in the Dollar across the board.
Key Quotes
“The US dollar witnessed a bout of profit booking across the board after the release of the surprisingly weak US Durable goods data yesterday. The 10-year Treasury yields hit a low of USD 1.75%, while Gold prices rallied to near USD 130/Oz levels. The US dollar index fell to 94.22 levels.”
“Meanwhile, the GBP/USD pair rose to 1.52 levels today, marking another day of struggle around the same.”
“GBP/USD may rise to 1.54 levels if the Federal Reserve (Fed) comes-out less hawkish than expected.”
“The bullish view is largely dependent on the view that the Federal Reserve would come out less hawkish amid non stop action from all other central bankers.”
“Even if the Fed does not change much of its stance and language with respect to the interest rates, the market is likely to witness the correction in the US dollar across the board.”
“Technically, the bears are likely to stay on the sidelines so long as the pair trades below 1.51 levels.”
“Thus, overall the up move anticipated at current levels provides an attractive risk reward ratio.”
Key Quotes
“The US dollar witnessed a bout of profit booking across the board after the release of the surprisingly weak US Durable goods data yesterday. The 10-year Treasury yields hit a low of USD 1.75%, while Gold prices rallied to near USD 130/Oz levels. The US dollar index fell to 94.22 levels.”
“Meanwhile, the GBP/USD pair rose to 1.52 levels today, marking another day of struggle around the same.”
“GBP/USD may rise to 1.54 levels if the Federal Reserve (Fed) comes-out less hawkish than expected.”
“The bullish view is largely dependent on the view that the Federal Reserve would come out less hawkish amid non stop action from all other central bankers.”
“Even if the Fed does not change much of its stance and language with respect to the interest rates, the market is likely to witness the correction in the US dollar across the board.”
“Technically, the bears are likely to stay on the sidelines so long as the pair trades below 1.51 levels.”
“Thus, overall the up move anticipated at current levels provides an attractive risk reward ratio.”