GBP/USD: Test of the 1.4300 area possible - Westpac

The trend decline in the USD continues and shows no sign of losing steam and that should keep GBP/USD supported, with a test of the 1.4300 area possible during the week ahead, according to Imre Speizer, Research Analyst at Westpac.

Key Quotes

“The BoE’s outlook is mixed: the average wage settlement in 2018 is expected to be 3.1%, up from 2.6% in 2017 and the largest since 2009. Against that, its consumer spending forecast is downgraded from 1.25% to 1.5%.”

“Brexit commentary has weighed recently, but waxed and waned over the past few months. EUR/GBP testifies to that, having ranged sideways between 0.87 and 0.89 since September, and currently threatening to break higher.”