GBP/USD Weekly Fundamental Analysis – March 28- April 1, 2016 -Forecast

The GBP/USD ended the week at 1.4126 falling 2.45% this week on the stronger US dollar and increased worries over the possibility of an exit from the Eurozone after terrorism in Brussels heated up the debate.  Sterling Pound has already dropped at least 2 percent versus all of its Group-of-10 counterparts this year, and options prices suggest it will fall further against every one over the next three months. That would see the U.K. currency’s losses extend beyond June 23, when the public will vote on the nation’s membership of the European Union. There’s a premium for options protecting against sterling losses over contracts betting on a gain in the case of every G-10 currency. The biggest is the 5.6 percentage-point premium for three-month options hedging a slide versus the yen, data compiled by Bloomberg show. The gap on pound-dollar contracts widened to a record 4.4 percentage points. That’s more than double the difference on March 22, before the measure encompassed the day of the referendum. Bank of England Governor Mark Carney is set to gain the ability to limit borrowing by investors in rental housing within months, increasing his power over the property market. Testifying in Parliament on Thursday, Chancellor of the Exchequer George Osborne said he’ll probably grant the BOE so-called powers of direction over the buy-to-let market later this year. He said he’s responding to systemic risks in that area identified by the central bank’s Financial Policy Committee. gbpusd
Source: fxempire

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