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18 Mar 2015
GBP/USD hit hard by slow wage growth, BOE minutes
FXStreet (Mumbai) - The GBP/USD pair continues to slide, extend losses to hit the session low of 1.4662 after the official data in the UK showed wage growth slowed in January, while the Bank of England (BOE) minutes revealed concerns regarding disinflationary impact of strong Pound.
Cable hits fresh four and a half year lows
The Cable fell to a low of 1.4662, a level last seen in July 2010 after the release of the BOE minutes and disappointing wage data pushed the UK 10-year Gilt yield lower by 6.1 basis points to 1.62%. Moreover, the concerns over the strong Pound expressed in the minutes were voiced by the BOE governor Mike Carney last week.
The GBP, after the release of the BOE minutes, appears more vulnerable to a hawkish FOMC policy statement due to later today.
GBP/USD Technical Levels
The immediate support is seen at 1.4650, under which losses could be extended to 1.4540 levels. On the flip side, a rise above 1.47 could see the pair re-test 5-DMA at 1.4747 levels.
Cable hits fresh four and a half year lows
The Cable fell to a low of 1.4662, a level last seen in July 2010 after the release of the BOE minutes and disappointing wage data pushed the UK 10-year Gilt yield lower by 6.1 basis points to 1.62%. Moreover, the concerns over the strong Pound expressed in the minutes were voiced by the BOE governor Mike Carney last week.
The GBP, after the release of the BOE minutes, appears more vulnerable to a hawkish FOMC policy statement due to later today.
GBP/USD Technical Levels
The immediate support is seen at 1.4650, under which losses could be extended to 1.4540 levels. On the flip side, a rise above 1.47 could see the pair re-test 5-DMA at 1.4747 levels.