Global macro overview for 28/09/2015:
According to the research conducted by the Centre for Economics and Business Research (CEBR), the BoE is very likely to maintain the key rate at current levels up to the middle of the next year, mainly due to the sluggish global economic recovery. The first rate hike might occur in May or April 2016, and not in February 2016 as previously conducted. Besides, the BoE keeps target inflation at 2% that is closer to that projection and this situation might continue even up to the middle of 2017. Moreover, expects at the CEBR forecast only a gradual rates hike up to the level of 2% and interest rates at this level will be set as a “new normal” for financial markets.
From the technical point of view, the GBP/USD pair is currently trading at the important daily support level of 1.5171. Any breakout lower will be considered bearish in the near-term. The level of 1.5000 might be tested soon.
The material has been provided by InstaForex Company – www.instaforex.com