All Articles Tagged - GBPUSD

Week Ahead – Flash PMIs to bring recession risks to the forefront, SNB meets

Posted on March 18, 2022 at 1:55 pm GMT

The upcoming week will quieten down a bit after what was a busy time for central banks and geopolitical events. But there’s still plenty of activity ahead as the latest flash PMI readings are due and the Swiss National Bank will keep the monetary policy theme running, not to mention how the war in Ukraine will unfold amid slow progress in the negotiations for a ceasefire. Will Eurozone PMIs flag a slowdown? The fallout from the Ukraine conflict has had [..]

Daily Market Comment – Stock markets come back to life, BoJ sacrifices the yen

Posted on March 18, 2022 at 9:49 am GMT

Stocks headed for solid weekly gains despite lingering risks Dollar softens but yen performs even worse as BoJ lags behind BoE raises rates in a cautious manner, dealing a blow to sterling Wall Street comeback Hopes for a peace deal in Ukraine and signals that China will open the stimulus taps wider helped global equity markets to shake off the blues this week, even as many of the risks behind the recent rout continue to linger. Between the ongoing war, [..]

Technical Analysis – GBPUSD bias improves but the overall outlook remains bearish

Posted on March 18, 2022 at 8:37 am GMT

GBPUSD has bounced back from its March low of 1.2999, crossing above its 50-period simple moving average (SMA) as positive momentum resurfaced. However, the pair is currently trading well below its 200-period SMA and hasn’t yet broken its series of successive lower lows, reinforcing an overall bearish outlook. Short-term momentum oscillators reflect a positive bias as the RSI is located above its 50 neutral mark. Also, the MACD is found above zero and its red signal line, which indicates that [..]

Technical Analysis – GBPUSD retreats near 1.3100; next stop at 16-month low

Posted on March 17, 2022 at 2:53 pm GMT

GBPUSD has declined considerably after the Bank of England’s interest rate decision earlier today. The RSI is holding in the negative territory; however, the stochastic oscillator is heading north, towards the overbought region. Immediate support to further declines may be taking place around the 1.3000 round figure, while the 1.2850 level and the 1.2670 barrier – taken from the lows in late 2020 – could provide additional support in case of steeper losses. A move to the upside may meet resistance at 1.3270, this being a bottom recorded on March 2, with [..]

US Open Note – Pound corrects lower after dovish BoE; commodities up again

Posted on March 17, 2022 at 2:29 pm GMT

Dollar weaker after hawkish FOMC The US dollar continued to trade lower against a basket of major currencies for the third consecutive day to reach 98.19 despite the strong hawkish message from the FOMC policy meeting late on Wednesday. The Fed acknowledged the Ukrainian geopolitical risks and slashed its growth projections by almost half to 2.8% for 2022 but raised interest rates by a quarter-percentage as widely expected. Strikingly, however, it signaled six more rate increases this year and pledged [..]

Daily Market Comment – Fed unleashes the hawks, will the BoE follow suit?

Posted on March 17, 2022 at 10:10 am GMT

Fed raises interest rates and signals another six hikes this year Despite hawkish message, Wall Street powers higher, dollar retreats Bank of England coming up next as sterling bounces back Fed gets the ball rolling The Federal Reserve officially kicked off its tightening cycle yesterday, raising interest rates by a quarter point. Although the rate hike itself was fully baked into money markets, the central bank still delivered a hawkish twist by signaling another six rate increases for this year [..]

BoE policy meeting: Rate hike imminent but what’s next? – Forex News Preview

Posted on March 16, 2022 at 8:30 am GMT

The Bank of England (BoE) is largely expected to follow the Fed’s footsteps on Thursday, announcing its third rate hike in a row (12:00 GMT). While the rate decision itself could have a negligible impact on the pound, the central bank’s outlook on future policy steps could trigger the next round of volatility. BoE to hike rates as inflation expectations soar The rate hike cycle is already well underway in the UK, with the Bank of England having raised interest [..]

Daily Market Comment – Stocks under pressure, yen hammered as yields spike

Posted on March 15, 2022 at 9:51 am GMT

Inflation worries intensify, lifting yields ahead of Fed rate hike Stock markets under fire, especially tech sector and China plays Yen gets blasted, gold and oil retreat ahead of more peace talks Equities sink ahead of Fed liftoff Global markets are under an incredible amount of stress as the Fed prepares to pull the trigger on higher rates. The war in Ukraine and the latest lockdowns in China have set off a domino effect, with investors betting that the inflationary [..]

Technical Analysis – GBPUSD holds near 16-month low of 1.3000

Posted on March 15, 2022 at 7:41 am GMT

GBPUSD is posting a selling interest move, testing the 1.3000 psychological level, which is a fresh 16-month low. The RSI indicator is pointing upwards in the oversold zone, while the stochastic oscillator created a bullish crossover within its %K and %D lines below the 20 level. Both are suggesting that the bearish mode has come to an end and the next move may be to the upside. If the price recovers and returns above the 1.3080 resistance, the next target [..]

US Open Note – Markets hope for peace talks; US stock futures mixed

Posted on March 14, 2022 at 2:15 pm GMT

Risk mode on as Ukraine-Russia start the fourth round of discussions While there is no clarity on what the positive assessments from the latest Russian-Ukraine high-level talks are, markets continued to behave like the fourth-round of talks would result in another positive outcome today even if Russia’s attacks expanded closer to the Polish borders, and the war conditions remain largely unchanged. Another reason for the current risk-on tendencies is perhaps the fact that investors have started to adjust to the [..]

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