OctaFX | OctaFX Forex Broker
Open trading account

Forex Flash: Recent GBP decline does not necessarily indicate buying opportunity – UBS

The fact that sterling's absolute NEER according to the BoE's ERI is near 20-year lows should not be interpreted an immediate buy signal as relative trend shifts the valuation is broadly fair. In contrast, what happened in 2008-2009 was a case of spot-NEER reaching extremely undervalued levels (over 30% undervalued versus trend) even factoring the structural changes in the UK post-financial crisis, and this was the point where some consolidation began and buyers came back in.

According to Research Analyst Gareth Berry at UBS, “This is where the EUR/GBP price action perhaps matters a lot more, given the EUR is 48% of the UK's NEER (weightings according to the BoE's latest revision in August 2012), a serious move in the EUR/GBP will really start to push sterling towards the extreme end of valuations, as opposed to the GBP/USD (US is 16% in the basket).”

Forex Flash: US March quarter GDP growth poised to resume – NAB

Economic indicators available for the March quarter are pointing to a resumption of GDP growth following an essentially flat December quarter (the small decline in the Advance GDP estimate has been revised away). In particular, the ISM manufacturing and non-manufacturing surveys are consistent with above trend growth.
Read more Previous

Forex: USD/JPY hovering over 96.00

The USD/JPY regained the 96.00 level and has spent the last hours hovering over that level, as the greenback received a boost following strong US retail data.
Read more Next
Start livechat