All Articles Tagged - GBPUSD

Week Ahead – RBA and RBNZ to weigh 50-bps hikes but NFP report to set the mood

Posted on September 30, 2022 at 10:22 am GMT

The antipodean central banks will kick off the new month with their October policy decisions, but the latest jobs report out of the US could steal the limelight amid the never-ending anticipation of when the Fed will reach peak hawkishness. Following the latest panic in the markets and the renewed rush to buy US dollars, the reserve banks of Australia and New Zealand might be more inclined to maintain their aggressive pace of tightening and not ease up just yet. [..]

Daily Market Comment – Fed officials fire another shot at stocks, sterling recovers

Posted on September 30, 2022 at 8:50 am GMT

Fed warnings and solid US data deal another blow to equity markets Dollar takes another step back as euro and sterling reclaim lost ground Russia set to annex Ukrainian territories, Fed vice chief deliver remarks Wall Street selloff A stormy quarter is drawing to a close. Hopes for a soft economic landing have all but vanished as the Fed continues to beat the drums of forceful rate increases, sending financial markets into a tailspin. With bonds getting blasted alongside stocks, [..]

Daily Market Comment – Bank of England intervenes to calm market stress

Posted on September 29, 2022 at 8:26 am GMT

BoE announces emergency intervention in UK bond markets Global yields come crashing down, stock markets rally in relief Dollar surrenders some ground, but yen cannot capitalize properly BoE steps in The Bank of England hit the panic button on Wednesday, announcing it will step into the UK government debt market to buy £65bn in bonds over the next two weeks to restore stability. Yields on UK bonds had gone through the roof in recent days after the government rolled out [..]

What now for sterling after investors lose confidence in the UK economy? – Special Report

Posted on September 28, 2022 at 9:20 am GMT

The pound crashed to an all-time low versus the US dollar this week as investors fled the UK after losing confidence in the new government’s economic vision. Having already been the second worst performing currency this year, sterling’s year-to-day losses now stand at 20%. But as the selloff shows some signs of easing and the currency stabilizing in FX markets, did the budget mark a permanent downgrade of UK assets, or was this a natural overreaction given the economic uncertainties [..]

Daily Market Comment – Dollar goes ballistic, sterling licks wounds, stocks slide

Posted on September 28, 2022 at 8:37 am GMT

Dollar reigns supreme over FX space as traders rush to safety Sterling stabilizes near record lows, gold threatens another break Stock markets slide, valuations still too expensive for this regime Bonds implode, dollar shines A selloff in global bond markets has snowballed into a meltdown, sending shockwaves across every asset class. Central banks are still on a crusade to vanquish inflation and governments are finding out the hard way that markets won’t tolerate massive unfunded deficits when interest rates are [..]

Daily Market Comment – Pound rebounds on BoE bets; Dow enters bear market

Posted on September 27, 2022 at 8:31 am GMT

Sterling rebounds as traders ramp up BoE bets Rate hike expectations keep hurting equities Oil and gold claw back some losses after hitting new lows Traders expect more than 100bps hike by the BoE The US dollar continued outperforming all its major counterparts on Monday, with the dollar index hitting a fresh 20-year high. Although it eased somewhat during the Asian session today, its broader uptrend remains intact with its tank being fueled by two pumps: an ultra-hawkish Fed and [..]

Technical Analysis – GBPUSD takes a breather after record low

Posted on September 27, 2022 at 7:31 am GMT

GBPUSD survived Monday’s freefall to the uncharted territory with minor damage, minimizing its losses from a record low of 1.0324 to 1.0683. The pair is currently aiming for a climb above Friday’s closing price of 1.0845 as the RSI and the stochastics seem to have bottomed in the oversold area, signaling a potential upside reversal. Yet, with the indicators still well dipped in the bearish territory and the price itself far below the broken bearish channel, downside risks may keep [..]

Technical Analysis – GBPUSD reverses up after strong sell-off towards multi-year low of 1.0325

Posted on September 26, 2022 at 1:17 pm GMT

GBPUSD is erasing the losses that it posted earlier in the day and turned the red day to a positive one. The pair reached an all-time low of 1.0325 and is still trading below the long-term descending channel. Technically, the MACD is strengthening its negative momentum below its trigger lines. However, the RSI is turning higher in the oversold region, suggesting that the next move would be to the upside rather than to the downside. pattern near 1.1060 to 1.1410, which overlaps with the 20-day simple moving [..]

Daily Market Comment – Pound crashes, stocks pummelled after UK budget

Posted on September 26, 2022 at 9:23 am GMT

Pound leads declines in FX markets, approaches parity, as UK budget sparks panic UK yields soar, Italian yields jump too as far-right win adds to uncertainty Dollar scales fresh highs, stocks sink but some signs of recovery today UK budget gets big thumbs down from investors Markets reacted in the worst possible way to the UK’s economic plan unveiled on Friday, sending the pound to rock-bottom levels against the US dollar, while dumping UK gilts. Chancellor Kwasi Kwarteng announced the [..]

Week Ahead – Euro eyes Italian elections and flash CPI, dollar may take a backseat

Posted on September 23, 2022 at 11:19 am GMT

With the Fed meeting out of the way, a quieter week is on the horizon, barring of course any flare up of tensions between Russia and Ukraine. Either way, the spotlight will probably fall on the euro as far-right parties are expected to gain ground in Italy’s parliamentary election on Sunday, while preliminary inflation readings will come to the fore at the end of the week. In the US, the highlight will be on the PCE inflation figures, though it’s [..]

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