All Articles Tagged - GBPUSD

Week Ahead – US inflation might peak, will the dollar follow?

Posted on May 6, 2022 at 1:07 pm GMT

The Fed signaled that it will avoid shock-and-awe rate increases, putting more emphasis on avoiding a recession rather than vanquishing inflation. Another round of US inflation data is on tap next week and the Fed might finally get some good news, as the yearly CPI rate may have peaked. Is this the beginning of the end for the dollar’s supremacy? Maybe not. Inflation crest The message from the Federal Reserve this week was much softer than feared. Chairman Powell shut [..]

Technical Analysis – GBPUSD strikes 22-month low on cautious hike from BoE

Posted on May 6, 2022 at 9:56 am GMT

GBPUSD recorded a 22-month low of 1.2275 but it seems that the bearish bearing is taking a breather. That said, the descending simple moving averages (SMAs) are endorsing the downward direction, keeping the mood heavy in the pair. Currently, the Ichimoku lines are pointing lower, indicating that negative forces have yet to abate, while the short-term oscillators are transmitting mixed messages in directional momentum. The MACD is promoting strengthening negative impetus, meanwhile, the RSI is drifting a tad above the [..]

Daily Market Comment – Stock markets get smoked ahead of US payrolls

Posted on May 6, 2022 at 8:34 am GMT

Epic turnaround for stock markets, Nasdaq loses 5% as Fed dust settles Funds blowing up, deleveraging, or traders saying Powell must do more? Sterling sinks after BoE, US employment report the main event today Equity market mayhem What an epic turnaround for Wall Street. After stock markets rallied like there was no tomorrow in the aftermath of the Fed meeting, where policymakers decided to ‘go slow’ with rate increases, the wheels suddenly came off. The Nasdaq closed down by 5%, [..]

US Open Note – Pound crashes on dovish rate hike; Wall Street eyes bearish open

Posted on May 5, 2022 at 1:32 pm GMT

Pound crashes after BoE policy decision The Bank of England stuck to its March guidance, confirming expectations of a 25bps rate hike to 1.0% on Thursday although three out of nine board members surprisingly voted for a sharper 50bps increase. Its inflation projections for the current year moved up to 10% on the back of higher household energy prices and projected additional rises in October, while its growth estimate is now warning a dip slowdown over the next year as [..]

Daily Market Comment – Fed downplays aggressive hikes, BoE decision next

Posted on May 5, 2022 at 8:37 am GMT

Fed raises rates but overall message not as hawkish as markets expected Dollar takes a step back, stock markets and gold come back swinging Bank of England meeting today might play out in a similar manner Don’t fear the Fed As widely expected, the Federal Reserve raised interest rates by half a percentage point and announced that the balance sheet reduction process will commence in June. There was a lot of speculation ahead of the event that the Fed would [..]

Technical Analysis – GBPUSD retraces FOMC bounce, but will the bulls give up?

Posted on May 5, 2022 at 7:34 am GMT

GBPUSD closed confidently above the 1.2570 resistance area on Wednesday after a short period of consolidation, raising hopes that the bounce off 1.2410 may get new legs in the short term ahead of today’s BoE policy announcement (12:00 GMT). The pair is currently giving up some ground, but the positive trajectory in the RSI and the Stochastics, which have recently exited the oversold territory, and the gradual recovery in the MACD, are sending encouraging signals that buying appetite could soon return. [..]

BoE policy meeting: A normal rate hike amid stagflation fears – Forex News Preview

Posted on May 4, 2022 at 1:41 pm GMT

The Bank of England will review its policy and update its economic projections on Thursday, a day after the Fed, with the announcement scheduled for release at 12:00 GMT. A rate hike is already baked in, but what is still uncertain is how aggressive the central bank is planning to be as the toxic mix of heating inflation and slowing economic growth is making any decision in either direction risky to take. BoE the only player in town amid stagflation [..]

US Open Note – Stock futures flicker green and dollar flat ahead of Fed meeting

Posted on May 4, 2022 at 1:18 pm GMT

Fed tone eyed to rekindle volatility, as US ISM Services PMI draw prior focus US stock futures have stopped the bleeding, looking composed, as market jitters keep volatility subdued ahead of today’s Federal Reserve decision. The dollar index is hovering around its March 2020 highs, flirting with the 103.00 level, underpinned by elevated US Treasury yields and lingering risk-off pressures. The 10-year yield is at 2.96%, the 5-year at 3.01% and the 2-year at 2.79%. The Fed is expected to [..]

US Open Note – US Stock futures steadier, dollar ticks slightly lower

Posted on May 3, 2022 at 2:37 pm GMT

US Treasury yields support greenback, JOLTS data eyed This is nonfarm payrolls week, and we also have central banks meeting to deliver their rate hike decisions. Today, the Federal Open Market Committee (FOMC) began its two-day meeting on interest rate policy, which will be submitted on Thursday. US stock futures have recouped earlier weakness on the back of investor jitters ahead of the Federal Reserve’s policy decision. In the presence of hot inflation and a hawkish Fed, US treasury yields remain elevated [..]

Technical Analysis – GBPUSD consolidates above 22-month low; bearish outlook

Posted on May 3, 2022 at 1:33 pm GMT

GBPUSD is consolidating after the plunge to a new 22-month low of 1.2410 in the preceding week. The RSI indicator is rising from the oversold region, hitting the 30 level, while the MACD is moving sideways below its trigger and zero lines. The 20- and 40-day simple moving averages (SMAs) are heading south, mirroring the latest sharp descending movement. Further losses should see the latest low of 1.2410 acting as a major support before unlocking fresh troughs around 1.2250, registered [..]

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