Flash: Cable is going down - HSBC

FXstreet.com (Barcelona) - According to HSBC, the U.K. and U.S. monetary policies are in the early stage of an unusual situation, what they call a rare divergence in direction of policy, which should lead to further falls in GBP/USD.

Key quotes

"UK monetary policy is seeking to distance itself from the less dovish tone emanating from the US Fed. Such a divergence in policy is a rare event in UK-US economic history, and has been associated with GBP-USD weakness in the past."

"In addition, while the path of policy in both countries will be determined by the economic data, here too the risks are skewed towards the GBP weakness."

Jul 22, 2013

Session Recap: Yen drives USD lower across the board; Abe wins elections

Session in the Asia-Pacific to start the week opened with an early move higher in Yen that soon corrected to break even before Tokyo started trading, but then as soon as traders hit the floor the Yen rose again to as high as 99.57 of the USD/JPY pair.

Flash: Risk narrowly skewed for an RBA cut in August - RBS

Despite a rate cut by the RBA on August 6 is not clear cut, Greg Gibbs, FX Strategist at RBS, thinks that if inflation proves soft this week and the AUD remains above 0.90, "I narrowly expect the RBA to cut in August" Gibbs said.