All Articles Tagged - GBPUSD

Volatility drops across the board after the Fed meeting – Volatility Watch

Posted on September 24, 2024 at 10:47 am GMT

Euro/dollar volatility remains low as dollar underperforms Volatility in commodities stays elevated, led by gold Stock indices experience decent volatility despite the rally Euro/dollar volatility has eased a bit over the past week, as the market digested the strong Fed rate cut. Similarly, volatility of most yen crosses has dropped aggressively lower, as the yen surrendered part of its recent sizeable gains, despite the fact that the BoJ maintained the chances of another rate hike in 2024. Volatility in the commodities’ space remains elevated [..]

Daily Comment – China’s stimulus blitz supports positive equities sentiment

Posted on September 24, 2024 at 7:49 am GMT

Dollar tries to recover as Fedspeak favors further cuts China announces new measures, positive initial market reaction Aussie benefits from another hawkish RBA meeting Gold, oil and pound rallies continue Debate for the next Fed cut intensifies US stocks remain in a positive mood as Fed speakers continue to advocate for further rate cuts, despite the fact that the US data confirm the strength of the US economy. Although the first Fed rate cut was almost unanimously approved, there seems to [..]

Technical Analysis – GBPUSD unlocks another new 2½-year high

Posted on September 24, 2024 at 6:52 am GMT

GBPUSD eases a bit after strong rally Technical oscillators move slightly down GBPUSD skyrocketed to a fresh two-and-a-half-year high of 1.3365 earlier today, adding almost 3% after the bounce off the 1.3000 round mark. The technical oscillators indicate an overstretched market. The stochastic is turning slightly lower in the overbought territory, while the RSI is pointing down following the pullback at the 70 level. Moreover, the 20-day simple moving average is losing its positive momentum, showing some downside pressure. If [..]

Daily Comment – Euro sinks on poor PMIs, dollar firms ahead of Fedspeak

Posted on September 23, 2024 at 9:02 am GMT

Eurozone PMIs dip into contraction zone, euro takes a dive Stocks mixed as weak PMIs offset optimism about China stimulus Dollar edges up as after Waller comments; Powell and PCE inflation eyed next Euro tumbles as recession fears return Eurozone business activity unexpectedly contracted in September according to the flash PMI estimates for September, sparking fresh concerns about the health of the economy. The S&P Global composite PMI fell to 48.9 in September from 51.0 in August, as German manufacturing [..]

Stocks’ positive reaction might continue until the second Fed rate cut – Special Report

Posted on September 20, 2024 at 10:02 am GMT

The Fed announced its first rate cut with a relatively balanced rhetoric History points to a high probability of back-to-back moves Dollar/yen and Treasury yields tend to drop until the second rate cut Barring a major event, stocks’ positive performance could continue The Fed commenced its monetary policy easing cycle in aggressive fashion by announcing an almost unanimous decision to cut rates by 50bps. The markets were surprised with the US dollar suffering the most. Both the accompanying policy statement [..]

Week Ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

Posted on September 20, 2024 at 9:57 am GMT

SNB is expected to ease for third time; might cut by 50bps RBA to hold rates but could turn less hawkish as CPI falls After inaugural Fed cut, attention turns to PCE inflation September flash PMIs to do the rounds; spotlight on euro area SNB to keep trimming as strong franc bites The Swiss National Bank (SNB) will be the final major central bank to announce its policy decision in September. Like the Fed, there is a substantial degree of [..]

Daily Comment – Markets digest Fed decision; BoE and BoJ stand pat

Posted on September 20, 2024 at 8:38 am GMT

Dollar tumbles on bets of more aggressive Fed rate cuts BoE keeps rates steady, reiterating caution about future cuts BoJ stands pat, Ueda says more rate hikes are coming S&P 500, Dow Jones and gold hit new record highs Fed outcome allows risk-on trading The dollar tumbled against all but two of its major counterparts on Thursday, with the main gainers being the risk-linked currencies, the aussie and the kiwi. The greenback gained some ground versus the safe havens, the [..]

Quick Brief – BoE keeps rates on hold; pound likes the news

Posted on September 19, 2024 at 11:56 am GMT

BoE keeps rates stable at 5.0%; reduces gilt holdings as expected Policymakers remain worried about inflation risks GBPUSD jumps into the 1.3300 region The Bank of England (BoE) kept interest rates on hold at 5.0% as expected on Thursday by a majority of 8-1 versus 7-2 analysts predicted. Having kicked off its easing cycle with a normal 25bps rate cut back in August, the central bank judged that a gradual approach on the pace of rate reductions is more appropriate [..]

Technical Analysis – GBPUSD unlocks new high, but eyes remain on 1.3200

Posted on September 19, 2024 at 8:35 am GMT

GBPUSD prints new high near 1.3300 after FOMC rate decision Technical signals remain bullish but clear close above 1.3200 is needed BoE expected to leave rates steady at 11:00 GMT GBPUSD remains committed to closing above the 1.3200 level for one more day. The Fed delivered a surprise double rate cut of 50bps on Wednesday, lifting the pair to a new 2 ½-year high of 1.3296. Powell expressed confidence in avoiding a downturn but gave no clear indication of the pace [..]

Daily Comment – Fed goes big with first rate cut; BoE takes the torch

Posted on September 19, 2024 at 8:29 am GMT

Fed lowers interest rates by 50bps New dot plot signals another 50bps cuts by December Wall Street closes in the red, futures point to higher open BoE and BoJ take the central bank torch It has begun! The Fed decided to kickstart this easing cycle with a bold 50bps rate cut, and to flag more reductions before the turn of the year. The new dot plot pointed to another 50bps worth of reductions by the end of 2024, which translates [..]

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