- GBP/USD is struggling to breach 1.3050 as investors await monetary policies from the Fed and BOE.
- The cable may extend gains amid risk-on impulse in the market.
- The DXY is hovering around 99.00 in the absence of materialistic headlines from the Russia-Ukraine war.
The GBP/USD pair has opened on a cautiously positive note on Monday as the week is going to bring a power-pack action for the cable. The announcement of monetary policy from the Federal Reserve (Fed) will keep the greenback sellers on their toes while investors eye one more interest rate hike from the Bank of England (BOE) after two hikes of 25 basis points (bps) each in December and February. It is worth noting that the BOE was the first central bank that hiked its interest rates post the Covid-19 pandemic.
The think tank of the BOE has forecasted consumer price inflation would peak at about 7.25% in April, when household energy tariffs are due to rise by more than half in the pre-Ukraine crisis period, as per Reuters.
Post Russia’s invasion of Ukraine things have changed dramatically as the natural gas and oil prices have skyrocketed and the extent of inflation in the pound area is likely to move beyond the BOE’S Feb meet forecasts. This has raised the odds of one more interest rate hike from the BOE.
Meanwhile, the US dollar index (DXY) is hovering around 99.00 due to the absence of materialistic headlines from the Russia-Ukraine war. The monetary policy from the Fed is due on Wednesday and investors are betting on a beyond imagination outcome this time.
Apart from the monetary policies of the Fed and BOE, investors will also keep an eye over the activities of British National Statistics as the agency will report the Claimant Change numbers. This will present the number of unemployed people in the UK.
|Today last price||1.3046|
|Today Daily Change||0.0011|
|Today Daily Change %||0.08|
|Today daily open||1.3035|
|Previous Daily High||1.3125|
|Previous Daily Low||1.3028|
|Previous Weekly High||1.3246|
|Previous Weekly Low||1.3028|
|Previous Monthly High||1.3644|
|Previous Monthly Low||1.3273|
|Daily Fibonacci 38.2%||1.3065|
|Daily Fibonacci 61.8%||1.3088|
|Daily Pivot Point S1||1.3|
|Daily Pivot Point S2||1.2965|
|Daily Pivot Point S3||1.2903|
|Daily Pivot Point R1||1.3098|
|Daily Pivot Point R2||1.316|
|Daily Pivot Point R3||1.3195|
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.
Follow us on Telegram
Stay updated of all the news
EUR/USD remains on the back foot below 1.0800
EUR/USD remains on the defensive below 1.0800, as it consolidates weekly gains heading into Friday’s European session. The pair takes cues from the market’s sluggish momentum amid a light calendar and repositioning ahead of next week’s top-tier EU/ US events.
GBP/USD keeps range around 1.2550 amid quiet markets
GBP/USD is keeping its range play intact at around 1.2550 in the European morning this Friday. The US Dollar is licking its wounds following the US jobs data-led steep sell-off. Markets stay cautious, anticipating the end-of-the-week flows and position adjustments.
Gold lacks firm intraday direction, flat-lines around $1.965 area
Gold price struggles to capitalize on the previous day's solid rebound from the 100-day Simple Moving Average (SMA) support near the $1,940-$1,939 area and oscillates in a narrow trading band on Friday.
Binance.US to suspend USD deposits, citing aggressive and intimidating tactics by the SEC
BinanceUS, the American arm of Binance.com, has indicated plans to suspend USD deposits, noting that its banking partners would do the same for withdrawal beginning June 13.
US jobless claims shake markets, ECB and Fed meetings await
US weekly jobless claims, of all things, was responsible for yesterday’s main market move. Applications rose from 233k to 261k, more than the 235k expected. It triggered a US bond rally which dragged European peers higher as well.