GBP / USD13 May 2024 10:38
“ US inflation figures released on Wednesday may give markets an indication about how the Fed will act in the coming months. Consensus forecasts point to a slowdown in price growth in April, with the core annual rate expected to ease to 3.6% from 3.8%.
"If that's the case, investors could breathe a sigh of relief and enjoy the dovish news from other central banks. We would then see the euro and sterling extend gains against the dollar, the yields ease and stock markets surf on a fresh wave of optimism," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.”
“ Currency exchange strategists at Bank of America (BoA) forecast that the Pound to Dollar exchange rate (GBP/USD) will strengthen to 1.33 at the end of this year with a further advance to 1.41 at the end of 2025. BoA expects overall yields will underpin Pound buying in the context of carry trades while the clear out of long positions”
They need to get this deal done quick @ 1.25 but as the timeline states Q3/Q4 subject to a vote, that $7.75 offer could drop from £6.20 to £5.82 which is why the support @ £6.00 area is failing IMHO