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3 Feb 2015
Cable and EUR/GBP drifting higher – KBC
FXStreet (Barcelona) - The KBC Bank Research Team notes that GBP rebounded against the EUR and USD after the release of January’s Construction PMI data which came out strong, rising to 59.1.
Key Quotes
“The BOE stays muted on monetary policy ahead of Thursday’s BOE meeting and of the inflation report that will be published next week.”
“The January construction PMI was strong, rising from 57.6 to 59.1. This is the least important of the three PMI’s.”
“Even so, the UK currency rebounded both against the euro and the dollar after the publication of the report.”
“The rebound, in cable continued as de dollar was in the defensive later in the session.”
“Cable trades in the high 1.50 area at the moment of writing. The second leg of the euro short‐squeeze in the afternoon finally also changed fortunes for EUR/GBP. The pair rebounded and trades in the 0.7575 area at the moment of writing.”
Key Quotes
“The BOE stays muted on monetary policy ahead of Thursday’s BOE meeting and of the inflation report that will be published next week.”
“The January construction PMI was strong, rising from 57.6 to 59.1. This is the least important of the three PMI’s.”
“Even so, the UK currency rebounded both against the euro and the dollar after the publication of the report.”
“The rebound, in cable continued as de dollar was in the defensive later in the session.”
“Cable trades in the high 1.50 area at the moment of writing. The second leg of the euro short‐squeeze in the afternoon finally also changed fortunes for EUR/GBP. The pair rebounded and trades in the 0.7575 area at the moment of writing.”