All Articles Tagged - GBPUSD

Daily Comment – Let the Fed rate cuts begin

Posted on September 18, 2024 at 8:15 am GMT

Dollar trades indecisively ahead of important Fed decision Investors assign a strong 60% chance for a 50bps cut Wall Street and gold traders also on the edge of their seats Pound rebounds on sticky UK inflation Fed to press the rate cut button The dollar rebounded against most of its major peers on Tuesday but resumed its slide early today as traders appear reluctant to assume a clear direction ahead of the very important Fed decision later today, when the [..]

Quick Brief – UK inflation unchanged at 2.2% ahead of BoE decision

Posted on September 18, 2024 at 7:29 am GMT

UK CPI remains at 2.2% y/y in August but core rate ticks up Services CPI also quickens slightly as BoE seen holding rates The UK’s inflation data for August was largely in line with expectations, changing little in terms of rate cut expectations for tomorrow when the Bank of England is due to announce its latest policy decision. The headline CPI rate held steady at 2.2% y/y as expected, but core CPI increased from 3.3% to 3.6% y/y, beating [..]

Technical Analysis – GBPUSD pauses quick rebound near 1.3200

Posted on September 17, 2024 at 2:10 pm GMT

GBPUSD faces mild losses near 1.3200; short-term bias remains positive UK CPI data due on Wednesday; FOMC & BoE rate decisions next in focus GBPUSD traded muted around the 1.3200 level and the short-term descending trendline from August’s peak on Tuesday as investors eagerly waited for the UK CPI data and the FOMC policy announcement on Wednesday, as well as the BoE rate decision on Thursday. The pair enjoyed a swift upturn off the 1.3000 region, keeping the medium-term uptrend [..]

Volatility eases a bit ahead of the key Fed meeting – Volatility Watch

Posted on September 17, 2024 at 10:51 am GMT

Euro/dollar volatility remains low as dollar weakness lingers Volatility in commodities stays elevated led by silver Stock indices and bitcoin experience lower volatility Euro/dollar volatility remains low as the market is preparing for the key Fed meeting on Wednesday that could deliver a previously unexpected 50bps rate cut. Amidst these conditions, yen pairs are experiencing the highest volatility of the past month as the yen continues to outperform its main counterparties on the back of divergent monetary policy. Volatility in gold has increased somewhat, partly [..]

Weekly Technical Outlook – USDJPY, EURUSD, GBPUSD

Posted on September 16, 2024 at 2:27 pm GMT

EURUSD speeds up to test 1.1100 area as debate over a bold Fed rate cut continues USDJPY hits 14-month low; BoJ awaited to give direction on rate hikes GBPUSD shifts to the upside ahead of CPI data and BoE rate decision FOMC rate decision –> EURUSD The Fed will announce its rate decision on Wednesday at 18:00 GMT and the question is not if, but by how much it will cut interest rates. Investors have long been debating between a 25bps [..]

Technical Analysis – GBPUSD accelerates after bouncing off 1.3000

Posted on September 13, 2024 at 11:36 am GMT

GBPUSD remains in positive territory Holds above short-term SMAs Stochastic head up, RSI moves horizontally GBPUSD has staged a crucial rebound off the 1.3000 key level on Wednesday, holding the short-term outlook to bullish. Currently, the pair is meeting the 20-day simple moving average (SMA) at 1.3125 with the next resistance levels coming from the almost two-and-a-half-year high of 1.3265 and the peak in March 2022 at 1.3310. However, a significant tumble beneath 1.3000 could take the bears towards the 50-day SMA [..]

Week Ahead – Fed to cut interest rates, BoE and BoJ to remain on hold

Posted on September 13, 2024 at 10:28 am GMT

Investors are split between a 25 and 50bps Fed rate cut BoE expected to stand pat, but resume cuts in November BoJ to also stay on hold, focus to fall on future hike signals Let the Fed cuts begin Since the July US employment report, which sparked fears of recession, investors have been trying to figure out the size of the potential rate cut the Fed will deliver at its September gathering, and the moment of truth has finally come. [..]

Daily Comment – Dollar firms after CPI, euro awaits ECB, techs lead equities rebound

Posted on September 12, 2024 at 8:51 am GMT

US dollar edges up after CPI report wipes out 50-bps rate cut bets Euro stuck on the backfoot in wait for ECB decision Wall Street rebound gathers pace as tech stocks rally Mixed CPI report disappoints US inflation fell to the lowest since February 2021 in August, but the bigger-than-expected drop in the headline figure was overshadowed by an acceleration in the monthly core measure. Wednesday’s CPI report was the last major piece of data before next week’s policy announcement [..]

Daily Comment – Equities are directionless ahead of US inflation report

Posted on September 11, 2024 at 8:23 am GMT

Mixed movements in equities as markets prepare for CPI Strong possibility for a downside surprise in inflation US presidential debate dominates headlines Bitcoin suffers while gold and yen rally Stocks are in anticipation mode US equity indices were mixed yesterday with the Nasdaq 100 index recording another green day and the Dow Jones mimicking the European stock indices’ negative performance. Market participants are most likely preparing for a period that includes key market events, like next week’s Fed meeting, starting today with [..]

Equities volatility jumps as sentiment turns negative – Volatility Watch

Posted on September 10, 2024 at 10:41 am GMT

Euro/dollar volatility remains low as market digests US data prints Volatility in commodities remains low apart from oil Stock indices and bitcoin experience much higher volatility Volatility in the main FX pairs, including euro/dollar, has eased in the past few days as the market is digesting last week’s US labour market data and preparing for Wednesday’s CPI report, which could play a role in determining the size of the imminent Fed rate cut. On the other hand, yen pairs are experiencing higher volatility [..]

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