GBP/USD struggles to gain any meaningful traction
Updated
Hello everyone! Join Darius as he provides insights into the market at the beginning of this week!
At the start of the week, GBPUSD experienced a higher opening around 1.0568 but struggled to attract significant buying interest. It moved within a range just below 1.2200, taking into account the cautious approach towards placing fresh bullish bets on the safe-haven US Dollar (USD). This cautiousness has been influenced by discouragement from equity markets in the United States.
On another note, there is still optimism regarding rising US Treasury yields, which supports a bullish outlook for USD. Additionally, earlier this month, the Bank of England (BoE) unexpectedly paused its interest rate hike cycle and provided some hints about its intention to limit increases in interest rates. These actions are expected to have an impact on limiting fluctuations in GBP/USD exchange rates and maintaining stability.
So join us as Darius presents his analysis on these factors and their potential implications for market participants throughout this week!
At the start of the week, GBPUSD experienced a higher opening around 1.0568 but struggled to attract significant buying interest. It moved within a range just below 1.2200, taking into account the cautious approach towards placing fresh bullish bets on the safe-haven US Dollar (USD). This cautiousness has been influenced by discouragement from equity markets in the United States.
On another note, there is still optimism regarding rising US Treasury yields, which supports a bullish outlook for USD. Additionally, earlier this month, the Bank of England (BoE) unexpectedly paused its interest rate hike cycle and provided some hints about its intention to limit increases in interest rates. These actions are expected to have an impact on limiting fluctuations in GBP/USD exchange rates and maintaining stability.
So join us as Darius presents his analysis on these factors and their potential implications for market participants throughout this week!
Note
good luck everyoneNote
The initial market reaction to mixed China PMIs and the passage of a temporary US funding bill over the weekend turned out to be short-lived amid fears of further economic turmoil. The economic headwind comes from rapidly rising borrowing costs. This continues to push investors towards traditional safe-haven assets and favors the USD bullish trend, thereby confirming the near-term negative outlook for the major currency.
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