Community Forecasts December 7-11: GBP/USD 1W Chart - Community Forecasts - Dukascopy Bank

Tue, 08 Dec 2015 12:28:19 GMT
Source: Dukascopy Bank SA
 
© Dukascopy Bank SA
The Cable has faced a strong drop in the middle of the last week, after the ECB failed to meet market expectations of a stronger monetary easing to offset weak inflation. The ECB left the benchmark lending rateat a record low of 0.05%, while it cut the deposit rate as expected to -0.3% from the existing -0.2%, charging banks more for deposits. 
Moreover, the quantitative easing will be prolonged by six months until March 2017 "or beyond if necessary", Draghi said at a closely watched presser. That's basically in-line with market projections of a 6-month prolongation. Nevertheless, the British Sterling sharply rebounded on Thursday's evening, trading with a solid gain against the US dollar due to the enhanced update from the UK services sector. The market participants were impressed by an upbeat services PMI in the UK. Markit unveiled the figure at 55.9 points in November, reaching the highest level since August, improving from 54.9 seen previously. Meanwhile, analysts had anticipated only a minor increase to 55.0 points.
The overall market sentiment is bearish (60%), while traders Jignesh believes "The GBP/USD has been in a bearish cycle since June.  It is showing signs that the cycle may be ending and for that reason we have seen the volatility subside.  Because of the expected FED hike next week, pressure on this pair is to be expected, however volatility measures indicate we will only see a minor sell off in the pair this week." thus, purely supporting bearish sentiment. However, another trader, rokasltu, supports bullish outlook and states that "The GBP/USD might gain some pips during this week, as BoE is expected to go for a rate increase sooner or later after the FED's move. Thus as pair is near year lows in my opinion it will regain some pips at the nearest future."

© Dukascopy Bank SA

Back to feed
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.