Pound Sterling Price News and Forecast: GBP/USD moves due to bad news reporting
|GBP/USD Forecast: UK elections outweigh Nonfarm Payrolls impact and favor the bulls
Hartlepool – a place where many GBP/USD traders are unable to locate on the map – is breaking the typical pre-Nonfarm Payrolls silence. Prime Minister Boris Johnson's Conservatives have won a by-election for the Northern seat, defeating the opposition Labour Party in its heartland. Such a victory provides some political calm.
Counting in a long list of other local and regional elections is moving slowly, but speculation about Scotland's elections is set to increase. The pro-independence Scottish National Party (SNP) is close to winning an absolute majority, paving the road for another clash with London over a new referendum. Read more...
GBP/USD analysis: Moves due to bad news reporting
The GBP/USD currency exchange rate made a short-term surge above the 1.3920/1.3930 zone. The rate bounced off the 1.3940 level and retreated to the 1.3860 level, which provided support. The volatility is attributed to the announcement of the Bank of England that it would stick to its monetary policy. Initially, a 30 pip move down occurred, which was followed by a 80 pip recovery.
These moves were created by news agencies reporting that the central bank would slow its government bond-buying. However, the official statement clearly stated that the program would remain unchanged. Moreover, some reputable news outlets even started publishing analysis of the future scenarios in case of central banks following the example of the BoE reducing easing. Read more...
GBP/USD Analysis: Bulls struggle to seize control despite hawkish BoE, focus shifts to NFP
The GBP/USD pair witnessed some intraday volatility on Thursday after the Bank of England announced its monetary policy decision. As was widely anticipated, the BoE left the benchmark interest rate and Asset Purchase Facility unchanged at 0.10% and £895 billion, respectively. However, the lack of clarity on future tapering plans exerted some downward pressure on the British pound. The early downtick, however, turned out to be short-lived and was quickly bought into near the 1.3855 area in the wake of more upbeat economic forecasts. Read more...
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