GBP/USD: forecast for Mar. 23-29
Less hawkish than expected Federal Reserve failed to support the cable for long. On the weekly chart the pair formed a long-shadowed candle with a small body, but we are closing the week far below the prior 1.4800 support.
Dovish BOE meeting minutes limited the sterling’s recovery. MPC members were focused on the downside risks to economic growth and inflation on the past meeting. BOE rate hike expectations shifted to 2016 as a result. On new week watch UK inflation figures on Tuesday. Consumer prices are expected to extend the decline. On Thursday Great Britain will publish February retail sales.