All Articles Tagged - GBPUSD

Can the upcoming UK data revive bets of another BoE hike? – Preview

Posted on November 9, 2023 at 6:33 am GMT

Despite hawkish BoE, investors don’t expect more hikes Friday’s GDP data expected to reveal slight contraction Employment and CPI data to follow next week Accelerating inflation may be the pound’s only hope Investors don’t buy BoE’s hawkish hold Last week, the Bank of England decided to keep interest rates unchanged via a 6-3 vote, with the three dissenters favoring a 25bps hike. In the accompanying statement, officials noted that policy must stay restrictive for an extended period, and that further [..]

Technical Analysis – Did GBPUSD get caught in a false breakout?

Posted on November 7, 2023 at 7:50 am GMT

GBPUSD trims gains after rejection from 200-SMA Buying appetite falls; support at 1.2260-1.2300 GBPUSD could not find enough buyers to expand Friday’ bull run above its 200-day simple moving average (SMA), closing with marginal losses within the 1.2300 area on Monday. Given the current negative momentum in the price, the question now is whether the pair will stay resilient above the 1.2260-1.2300 key region. A clear step below it and beneath the 50-day SMA would wipe out Friday’s boost, [..]

Week Ahead – RBA rate decision and UK growth on the radar

Posted on November 3, 2023 at 10:47 am GMT

Reserve Bank of Australia could raise rates on Tuesday Chinese trade and inflation stats also in the spotlight UK economy likely contracted in Q3 – can sterling hold on? RBA decision will be a close call With most of the major central bank decisions in the rear-view mirror and volatility in bond markets coming down, a quieter week lies ahead for FX traders. Most of the focus will fall on the Reserve Bank of Australia’s rate decision on Tuesday, [..]

Market Comment – Investors lock gaze on US NFP data

Posted on November 3, 2023 at 9:00 am GMT

Dollar slides as Fed pours more cold water on hike expectations Spotlight turns to US employment report for October Pound receives little boost from BoE’s hawkish hold Wall Street cheers potential interest rate peak, earnings help Dollar on the back foot ahead of NFP report The US dollar traded lower against all the other major currencies on Thursday, weighed down by the Fed’s decision on Wednesday to keep interest rates untouched, while pouring more cold water on expectations of one [..]

Technical Analysis – GBPUSD trapped within caution zone

Posted on November 2, 2023 at 4:20 pm GMT

GBPUSD cannot sustain strength above 1.2200 Short-term outlook remains grim Bank of England holds interest rates and guidance steady The Bank of England’s decision to keep interest rates and its guidance for “higher for longer rates” unchanged on Thursday prevented GBPUSD from breaking out of the bearish channel at 1.2170 or from rising above the broken support trendline from September 2022 at 1.2200. Downside risks are still present as the RSI remains below 50 for the third consecutive week and the stochastic [..]

Market Comment – Stocks rally, yields slump as Powell strikes neutral tone

Posted on November 2, 2023 at 10:06 am GMT

Powell signals Fed is likely done hiking rates, sparking relief rally Wall Street cheers Powell’s balanced tone, but dollar stays resilient as yields tumble Pound steady ahead of Bank of England decision Fed asks “should we hike more” The Federal Reserve left interest rates unchanged on Wednesday as expected, citing tighter financial conditions as a factor for pausing for a second straight meeting. With the rout in bond markets worsening since the previous FOMC meeting in September, the yield on [..]

Technical Analysis – GBPUSD tests key descending trendline

Posted on November 2, 2023 at 8:20 am GMT

GBPUSD slightly higher today as market digests Fed meeting It tests again the July 14 aggressive descending trendline Momentum indicators remain muted ahead of next key event GBPUSD is trading slightly higher, testing the resistance set by the July 14 downward sloping trendline that has defined the downleg since the July 14 high at 1.3141. The pair appears to have recently found a bottom just above the 1.1967 area with volatility slowing down ahead of this week’s key events. Momentum indicators [..]

Market Comment – Yen defies BoJ, tumbles after tweak to yield policy

Posted on October 31, 2023 at 10:19 am GMT

Bank of Japan adjusts yield curve control policy again, but yen skids Yields edge lower after Treasury Department says will borrow less in Q4 Dollar mixed, euro extends gains, stocks perk up Yen not impressed by BoJ’s incremental move The Bank of Japan took another step towards policy normalization on Tuesday, tweaking its yield curve control policy (YCC) for the second time this year amid signs of broadening inflationary pressures. As expected, the Bank upped its inflation forecasts for the [..]

Technical Analysis – GBPUSD consolidates near October lows

Posted on October 31, 2023 at 8:55 am GMT

GBPUSD stuck in a range after steep decline pauses Creates a pennant pattern, hinting at potential breakout Oscillators suggest that positive momentum is slowly picking up GBPUSD had been forming a profound structure of lower highs and lower lows since its 18-month peak of 1.3141. Although the pair managed to find its feet at the seven-month low of 1.2036, it has been rangebound for almost a month, failing to stage a solid recovery. Should buying interest intensify, the recent resistance of [..]

Weekly Technical Outlook – EURUSD, GBPUSD, USDJPY

Posted on October 30, 2023 at 1:25 pm GMT

Fed to stick to stable rates; will EURUSD rotate higher? GBPUSD at a discouraging position ahead of BoE rate announcement USDJPY not bearish yet as clock ticks down to BoJ rate decision FOMC policy meeting –> EURUSD The Federal Reserve’s two-day policy meeting ends on Wednesday at 18:00 GMT, as worries about the Middle East and its effect on the global economy rise. Interest rates are expected to remain steady for another month, but it’s unclear if there are [..]

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