GBP/USD explodes higher on the FED’s decisions to stay put (London) - GBP/USD had a high of 1.5982 and a low of 1.5892 prior to the release of the FED’s interest rates decision to stick with where they are for the time being. The GBP/USD jumped to 1.6050.

The recent data has been coming in weaker than expected and some participants had predicted a no change to their policy, but overall this has come as a shock to the markets and very dovish. The Fed is not tapering, worried about tightening conditions and fiscal policies as well due to specific economic conditions. They are being very cautious with regards to the housing data especially. So they want more evidence of improvements before they make any adjustments to the pace of tightening or tapering. They are not changing any of their thresholds and will take a balance approached with regards to inflation of 2% and the unemployment rate. Markets had been pricing in a dovish tone from the FOMC and between $5B - $15B cut in monthly QE purchases with a renewed emphasis on forward guidance in relation to unemployment thresholds between 6.5% and 6.0% as the FED tries to manage expectations for policy firming. We await the FOMC policy statement and press conference now.

GBP/USD levels

Indicators suggest momentum has slowed down. The 20 DMA is 1.5657, the 50 DMA is 1.5473 and the 200 DMA is 1.5486. Supports are ascending from 1.5936 and 1.5963 and 1.6000 where the pair jumped through to Spot 1.6040 where the pair sits currently between and 1.6058 the high while resistances are 1.6040 and 1.6080.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Growth concerns to keep weighing on the sentiment

The EUR/USD pair closed a second consecutive week unchanged around 1.1840, as the dollar got to appreciate ahead of the close on upbeat US data combined with risk-off. Sluggish global economic growth to keep weighing on the market’s sentiment.


GBP/USD: Brexit deal and coronavirus second wave leading the way

The GBP/USD pair stalled its weekly recovery on Friday, ending the day in the red at around 1.2915. Mild hopes related to a post-Brexit trade deal with the EU provided modest support to Sterling earlier in the week.


Gold: Next week's key macroeconomic events to keep an eye on

The troy ounce of the precious metal closed the week modestly higher at $1,950 but struggled to make a decisive move in either direction. Following its September policy meeting, the Federal Reserve kept its policy rate unchanged as ...

Gold News

It was the best of times, It was the worst of times

Economic reports from most of the major economies show the pace of the recovery has slowed.  In the same way, the recovery began before the end of the  Q2, the loss of economic momentum was seen as early as July in some series and August in others.

Read more

After yesterday's JMMC meeting WTI settles near $40 per barrel

WTI has been through a rollercoaster this week. The liquid gold has been in a downtrend leading into the OPEC+ JMMC meeting and then reversed the whole move. At the meeting the group agreed to extend the compensation period for overproduction till the end of December. 

Oil News