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What will happen to GBP/USD? – Investec

FXStreet (Barcelona) - Analysts at Investec view the two upcoming policy minutes release to have a huge influence in dictating the path of the GBP/USD over the coming months.

Key Quotes

“The MPC minutes released at 9.30 this morning may demonstrate a step back to a completely dovish stance in the committee, with a possible 9-0 vote in favour of no change in interest rates (it has 7-2 for the last few months).”

“Any such shift will be negative for GBP as it will be further evidence that UK interest rates are not moving for a significant period. Across the pond the Federal Reserve (Fed) Interest Rate minutes will take centre stage this evening, as investors begin to search high and low for clues as to the Fed’s next move.”

“The dollar remains in vogue for now, as the majority believe they could be the first leading economy to hike rates in the next cycle.”

“However, our trading desk this morning highlighted that the market may get caught out if the Fed disappoint, which could offer GBP some short term reprieve against the dollar.”

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