The pair gains nearly 5% this year and the latest round of policy decisions by the Fed and the BoE, sent it the highest levels since the first quarter of 2022. The US Fed on Wednesday made its belated pivot with an outsized 0.5% reduction and pointed to another 50 bps worth of cuts by the end of the year. The Bank of England started lowering rates earlier than its...
‘Easy does it’ was today's primary message from the Bank of England (BoE). Unlike the US Federal Reserve cutting rates by an outsized 50 basis points (bps) yesterday, the BoE is clearly in no rush to ease policy, with most policymakers backing a slow and steady approach. In an 8-1 majority vote, the BoE left the Bank Rate on hold at 5.0% (external member Swati...
The Bank of England lowered rates last month, for the first time in four years, joining major peers in their shift to less restrictive monetary settings. However, officials adopted a cautious and non-committal approach on further easing, as they remain wary of inflation which they expect to rise further this year. Today’s inflation report will likely strengthen...
England’s economy is facing a complex array of challenges, driven by domestic social unrest, geopolitical tensions, and evolving labor dynamics. Recent riots, sparked by both marginalized Muslim communities and extreme right-wing groups, highlight deep-seated socio-economic issues. These tensions have been exacerbated by international events, such as the October...
- The Bank of England (BOE) decided to deliver its #inflation medicine in a bigger dose at their recent monetary policy committee meeting. The bank made the shock decision to raise borrowing costs a half percentage point, taking the official rate to 5% ; double the size of the increase anticipated by most economists. BoE hiking interest rates to 5% , it adds...
UK100 has pulled back following its May record peak and has entered consolidation mode, as uncertainty around BoE’s policy path has taken hold. Although policymakers have pointed to a less restrictive stance ahead, there is no clarity around the timing of a pivot. The last inflation print did not help, as market pared back bets for a cut in August, since CPI...
GBP/USD Exchange Rate Rises Above 1.3000 on Inflation News As evidenced by the GBP/USD chart, yesterday the exchange rate rose above the psychological level of 1.3000 USD per pound for the first time in 12 months. The strengthening of the British currency occurred after the release of inflation news. According to ForexFactory: → Year-on-year Consumer Price...
With the Bank of England's (BoE) interest rate decision on the horizon, let's examine recent developments in GBPUSD, primarily through the lens of fundamental analysis. Chart analysis reveals that recent GBPUSD fluctuations have been largely influenced by the US dollar's strength, fueled by the Fed's increasingly hawkish stance. Although a September rate cut by...
The European Central Bank (ECB) initiated its cutting cycle last week on June 6. Expectations are that ECB policymakers are in no hurry to follow this first cut with a second one. Next week, we will see how much of a hurry the Bank of England (BOE) is to follow the ECB. A Reuters poll of 65 economists indicates the BOE is likely to wait until August to cut...
Preferred direction: BUY Comment: After the Fed meeting , the pound, like most majors, strengthened its position and in the near future, this trend is likely to continue. Of course, surprises from the Bank of England today cannot be ruled out, so the focus on the British currency today is the greatest. It is unlikely that the regulator will suddenly lower...
Bank of England release today. No change is forecast, but technically, I would expect liquidity grabs back down to monthly fibonacci support #1 before or during the news release. This trend is still strong going up. I anticipate this pair breaking June 2015 high.
Hi Traders! A symmetrical triangle has formed on the GBPUSD 1D chart, and we could have a breakout soon as pressure is quickly mounting on the pound. Here are the details: The market has found support and resistance at both the trendline support and trendline resistance of the triangle, as the market is looking for a direction. Looking at the price action, it...
Greetings Traders, As we delve into the intricacies of GBPUSD for potential trading opportunities, the convergence of fundamental factors takes center stage. This analysis encapsulates the interplay between interest rates, Consumer Price Index (CPI) data, and central bank decisions for both the Bank of England (BoE) and the Federal Reserve. Examining the BoE's...
The Bank of England (BoE) maintained a hawkish stance, keeping rates on hold at 5.25%, with votes kept at 3-0-6. With UK CPI reported at 4.6% in October 2023, the BoE views a longer-term fight to bring inflation back to its target range. The GBP gained strongly against the USD, with more upside potential as the BoE pushed back against the possibility of rate...
Hi Traders! GBPUSD looks to be on a pullback after breaking and closing above the previous resistance, and there are opportunities for short entries to take advantage of the potential pullback to target levels near the previous resistance break. Price Action 📊 After the initial break and close above the previous resistance at 1.24286, the market rallied to find...
It has been a big week of central bank policy announcements. While central banks in the US, UK, Switzerland, and Japan left key policy rates unchanged, the trajectory ahead remains vastly different. These central bank announcements were accompanied by a significant upward breakout in bond yields. Interestingly most of the increase in yields has been driven by...
Bullish EUR/AUD on Dovish RBA Monetary Policy Reunion The Reserve Bank of Australia (RBA) held its latest monetary policy meeting on October 3, 2023, and decided to keep the official cash rate (OCR) at 4.10%. This was widely seen as a dovish move, as markets had been expecting a 25 basis point rate hike. The RBA's decision was likely influenced by a number of...
The inflation battle is far from over in the UK. In fact, the nature of inflation is taking a new form as the root cause moves away from external to more domestically driven shocks. While the headline rate remained unchanged at 8.7%yoy in May, core inflation accelerated to 7.1% in May from 6.8% in April, marking the highest rate since March of 19922. In response...