- GBP/USD loses momentum around 1.2200 amid a rally of the USD.
- The hawkish comments from the Federal Reserve (Fed) lift the US Dollar against GBP.
- UK Gross Domestic Product (GDP) Q2, US Core Personal Consumption Expenditure (PCE) Price Index will be the highlight this week.
The GBP/USD pair remains under selling pressure and trades in negative territory for the fourth consecutive week during the early European session on Tuesday. The major pair currently trades near 1.2203, losing 0.07% on the day.
The Bank of England (BoE) decided to maintain the benchmark rate unchanged at a 15-year high level of 5.25%, halting a run of 14 consecutive rate hikes since December 2021. This, in turn, might weigh on the British Pound (GBP) against the US Dollar. The BoE official stated that further meetings are possible, indicating that the BoE could raise or halt interest rates if necessary.
On the other hand, the hawkish stance from the Federal Reserve (Fed) lifts the US Dollar and acts as a headwind for the GBP/USD pair. Early Tuesday, Minneapolis Federal Reserve Bank President, Neel Kashkari stated that he is one of the Fed policymakers who sees one more rate hike this year. He added that US rates probably have to go a little bit higher and be held there for longer, to cool things off. Earlier, the Federal Reserve Banks of Boston and San Francisco Presidents, Susan Collins and Mary Daly stressed that although inflation is slowing, future rate rises are likely. While Chicago Fed President Austan Goolsbee said that a soft landing is possible, inflation risks remain elevated, and the Fed should be fully committed to bringing inflation to 2%.
Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, holds above the 106.00 mark, near the highest level since November. Additionally, the 10-year yield climbed to 4.546%, a level not seen since October 2007.
Market participants will monitor US CB Consumer Confidence for September and New Home Sales due later on Tuesday. The attention will shift to the UK Gross Domestic Product (GDP) for the second quarter and the US Core Personal Consumption Expenditure (PCE) Price Index released on Friday.
|Today last price||1.2203|
|Today Daily Change||-0.0009|
|Today Daily Change %||-0.07|
|Today daily open||1.2212|
|Previous Daily High||1.2256|
|Previous Daily Low||1.2194|
|Previous Weekly High||1.2425|
|Previous Weekly Low||1.2231|
|Previous Monthly High||1.2841|
|Previous Monthly Low||1.2548|
|Daily Fibonacci 38.2%||1.2218|
|Daily Fibonacci 61.8%||1.2232|
|Daily Pivot Point S1||1.2185|
|Daily Pivot Point S2||1.2159|
|Daily Pivot Point S3||1.2123|
|Daily Pivot Point R1||1.2247|
|Daily Pivot Point R2||1.2282|
|Daily Pivot Point R3||1.2309|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.