GBP/USD bid, but for how long? – BBH

By FXStreet FXStreet (Guatemala) – Analysts at Brown Brothers Harriman noted that Sterling was a top performer, boosted by some flow-related news.

Key Quotes:

“Japanese insurer Mitsui Sumitomo agreed to purchase Lloyd’s of London unit Amlin for GBP3.5 bln. Cable thus recovered from its recent weakness, breaking above its 200-day MA near $1.5355 but has run into resistance around $1.54. Sterling/yen also bounced, but has run into resistance around 185.”

“The Bank of England meets Thursday, and under its new practices will publish the minutes from the meeting at the same time as announcing the results.

Ideas that were being bandied about that the BOE could raise rates this year ahead of the last BOE meeting are far from the center of the discourse now.

The easing of overall earnings growth and that fact that all three PMIs last week were weaker than expected may discourage any new hawkish dissents.”
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Source:: FX Street