I am bearish on GBP/USD.
UK inflation levels are low and could go lower this week, so the pound’s rally could be short-lived. As well, if UK Retail Sales and other key numbers have a poor week, the dollar could make up some ground. The markets will be keeping an eye on the FOMC minutes, and any hints about a rate hike later in the year would likely boost the greenback.
Expectations for a rate hike in the UK are muted, as inflation remains on a downward trend.
In our latest podcast we feature an interview with Dan Blystone and update on Greece