GBP/USD: Supported but with no room to rise – OCBC

The GBP got a leg higher as BoE’s Haldane provided support for the pound after saying a rate cut to negative is not imminent, forcing the market cut back on expectations on that front, analysts at OCBC Bank inform.

See: Potential move to 1.2400 on the cards – UOB

Key quotes

“Developments on the BoE and Brexit trade fronts turned positive for the GBP/USD, as Haldane pushed back on the immediate calls for a negative policy rate and the EU side appears to have softened somewhat on its trade stance.”

“The weak USD supports, but we remain cautious about extrapolating the recent run much higher from current levels.”