Article by ForexTime

Sterling held steady despite a dip in the Markit household spending finance index which showed a dip to a 2015 low.  It appears that Hawkish comments from BoE MPC member Miles trumped the softer than expected economic news, allowing the GBP/USD currency pair to remain buoyed above its 50-day moving average.

Outgoing BoE MPC member Miles sounded hawkish in saying that the turning in point is coming “pretty soon.” His remarks, with regard to UK interest rates pushed Cable up slightly higher.  Miles is leaving on Aug-31 and he will be replaced a Gertjan Vlieghe, who is widely consider as likely to join the more dovish majority at the MPC. Vlieghe is a former BoE employee and has since been a director at Deutsche Bank.

Sterling has been hovering near the 50-day moving average since the beginning of July stuck in a tight range between 1.54 and 1.57.  Momentum on the currency pair has been sapped with the MACD (moving average convergence divergence) index printing near the zero index level.  The relative strength index (RSI) moved higher with price action reflecting accelerating positive momentum but the current print of 58 is in the middle of the neutral range.

Article by ForexTime

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