GBP/USD unable to breach 200DMA and 1.3750 mark just yet, though remains well support amid ongoing buck weakness By Frank_Macro GBPUSD Fed BOE
ing average at 1.3736. GBP/USD is now consolidating in the 1.3730s. Nonetheless, cable’s 0.2% rally from around the 1.3700 level on Thursday has taken its weekly gains to more than 1.0% and seen the pair reach its highest levels since late-October. The move higher reflects a continuation of the recent broad weakening of the dollar against its G10 peers that has seen the Dollar Index drop more than 1.
Traders and analysts have put the recent weakness down to a squeeze on the market’s very crowded long-dollar positioning. Notably, recent weakness has seemingly gone against the fundamentals. Recent rhetoric frommembers and last week’s minutes have markets betting on as many as four rate hikes from the bank this year, with recent inflation and employment data supporting the outlook for tightening.
In the short-term, GBP/USD traders will be focused on Fed Vice Chair nominee Lael Brainard’s remarks in a Senate Hearing from 1500GMT as well as on other Fed speakers to guage the levels of support for multiple rate hikes and quantitative tightening in 2022. US weekly jobless claims figures will also be released at 1330GMT ahead of Friday’s US December Retail Sales report at the same time. UK November monthly GDP figures will also be released on Friday prior to the European open at 0700GMT.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
GBP/USD Forex Signal: More Upside Amid Fed and BOE ConvergenAmerican and British bond yields have been in a bullish trend in the past few weeks as investors anticipate more tightening by the Fed and Bank of England.
Read more »
USD/JPY Technical Analysis: Awaiting Powell TestimonyFor four trading sessions in a row, the price of the USDJPY currency pair is moving amid profit-taking sales towards the 115.05 support level.
Read more »
USD/CHF slides to near two-week low, 0.9100 mark back in sight amid sustained USD sellingUSD/CHF slides to near two-week low, 0.9100 mark back in sight amid sustained USD selling By HareshMenghani USDCHF CPI Fed RiskAppetite Currencies
Read more »
EUR/USD bulls capitalizing on USD weakness, yields lower on Fed's PowellEUR/USD is firm on the day and higher by some 0.35% at the time of writing. The greenback is suffering a phase of disinterest in what might be an over
Read more »
GBP/USD Forex Signal: Sterling Set for More GainsThe GBP/USD pair held steady on Thursday morning as investors reacted to the latest American consumer inflation data.
Read more »
Fed chair and US senator agree on core principles — and limits — for a potential digital dollarSenator Pat Toomey is adamant on establishing limits on a potential central bank digital currency, though he has not yet ruled out supporting one.
Read more »