All Articles Tagged - GBPUSD

Daily Market Comment – Stocks living the dream, yen shines as yields retreat

Posted on November 9, 2021 at 9:50 am GMT

US stocks remain at record highs, enabled by falling real yields Dollar a touch softer amid rumors Brainard could replace Powell Yen and gold enjoy more gains, sterling recovers despite risks Euphoria in the air Can anything stop the runaway train that is the US stock market? The S&P 500 closed at another record high on Monday, bringing its total gains for the year to a stunning 27%. Infrastructure spending, assurances from Fed officials that they won’t slam on the [..]

US Open Note – Dollar eases at the beginning of the week

Posted on November 8, 2021 at 2:01 pm GMT

FX arena remains calm As the new week gets underway, the outlook for the dollar is slightly negative. Having initially climbed on Friday, the dollar index later declined from the 94.62 high and has since remained negative. The euro, which has remained heavy following last week’s unsuccessful drop below the $1.1525 level, is still moving near $1.1570 with weak momentum. On Friday, the pound challenged the support near $1.3410, where it was unable to break through. A clean break below would set up a test of the December 2020 low of $1.3135, which would be a significant step forward. [..]

Daily Market Comment – Strong jobs report can’t lift dollar, but equities shoot up

Posted on November 8, 2021 at 9:27 am GMT

Dollar unable to capitalize on solid US employment report But stock markets push higher, powered by decline in yields Gold shines as well, focus now turns to litany of Fed speakers Strong NFP not enough to boost dollar The US employment report for October was pretty solid. Nonfarm payrolls overcame forecasts, the previous month’s number was revised higher, the unemployment rate fell another two ticks to reach 4.6%, and wage growth accelerated. Yet investors were not impressed. Treasury yields fell [..]

US Open Note – Nonfarm payrolls don’t impress dollar; Canadian jobs data mixed

Posted on November 5, 2021 at 2:41 pm GMT

Central banks keep faith in transitory inflation Central banks showed sympathy to people’s fears of high inflation the past two weeks but clearly rejected the strong rate hike pricing in markets for the next year, clarifying that they will remain faithful to their initial assessment of temporary inflation, and hence, keep borrowing costs steady, even if the transitory phase lasts a bit longer. Investors did not completely digest the recent dovish talk on interest rates and perhaps higher rates will [..]

Weekly Comment – Bonds are rallying but will US CPI spoil the party?

Posted on November 5, 2021 at 1:31 pm GMT

The Fed, ECB, BoE and RBA all pushed back on aggressive rate hike expectations that had been baked in by the markets, lifting bond prices. But US inflation numbers coming up next week could cast fresh doubt on the transitory story, sparking a selloff. However, it’s looking like a win-win for USD. The highlights: US Treasury yields have stabilized after slumping all week with the help of a better-than-expected jobs report for October. If the latest CPI readings also surprise [..]

Week Ahead – Another US inflation shock?

Posted on November 5, 2021 at 11:37 am GMT

It is a relatively calm week without any central bank meetings and just a handful of data points. The only event that could spark fireworks is the latest edition of US inflation, which will probably fire up further. If price pressures continue to broaden out into different sectors too, this could set off another cascade of worries around faster Fed rate increases and reignite the dollar’s rally. Not so transitory Will inflation fade away by itself? This question has tormented [..]

Daily Market Comment – BoE sinks pound, roils bond markets; All eyes now on NFP

Posted on November 5, 2021 at 9:57 am GMT

BoE shocks markets by not raising rates as expected, pound crashes below $1.35 Bond yields slump globally as central banks push back on investors’ rate hike pricings Dollar stands tall, Wall Street at a record ahead of October payrolls report BoE: the unreliable boyfriend strikes again The messaging was clear, or so everyone thought. Repeated signalling by Bank of England Governor Andrew Bailey that the Bank will need to act to keep a lid on surging inflation had led markets [..]

Technical Analysis – GBPUSD rocked as BoE fails to hike rates

Posted on November 5, 2021 at 9:43 am GMT

GBPUSD plummeted to a one-month low of 1.3470 yesterday, after the Bank of England’s Monetary Policy Committee (MPC) voted to continue with its existing programme of UK government bond purchases, and to keep the bank rate unchanged at 0.1%. The pair is now extending its drop past the 1.3470 low and the road to recovery for the pound is looking to be a bumpy one. The longer-term simple moving averages (SMAs) are directing lower, while the diving 50-period SMA is [..]

US Open Note – BoE rate surprise squeezes pound to monthly lows; oil rallies ahead of OPEC

Posted on November 4, 2021 at 2:40 pm GMT

BoE: Barking without bite Investors have been running ahead of central banks’ plans lately, growing confident that interest rates would rise earlier than previously anticipated as global inflation shows no signs of abating. In the UK though, the strong market pricing for a 15 bps rate hike had been somewhat reasonable. Policymakers, including Governor Andrew Bailey, had been constantly calling for a tighter monetary policy after showing willingness to raise interest rates before the bond tapering phase starts, citing the [..]

Daily Market Comment – Fed’s dovish taper lifts stocks but yields stay elevated, boost dollar

Posted on November 4, 2021 at 9:56 am GMT

Fed kicks off tapering but markets calm as Powell promises to be “patient” on rates ECB also pushes back on rate hikes, but dollar wins FX race Focus is now on Bank of England as pound slips again Restart of Iran nuclear talks keeps pressure on oil ahead of OPEC decision Powell delivers smooth taper The Federal Reserve announced the long-awaited tapering of its emergency stimulus on Wednesday, confirming plans to reduce its asset purchases by $15 billion a month, [..]

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