GBP/USD storms through key 1.2250 resistance ahead of BoE’s Bailey
GBP/USD has started a new week with a bang, extending the previous week’s uptrend into the third straight day on Monday. Pound Sterling bulls benefit from a broadly weaker US Dollar, as risk sentiment remains in a firmer spot so far this session.
The Asian stocks track the Wall Street rally, in the wake of easing US inflation and expectations of a dovish Federal Reserve (Fed) policy path. Meanwhile, the latest data from the CME Group showed that hedge funds are betting on a rally in the Pound Sterling at the start of 2023, which is underpinning the sentiment around the currency pair. Read more...
GBP/USD Forecast: Bulls remain at the mercy of USD price dynamics, ahead of BoE’s Bailey
The GBP/USD pair struggles to capitalize on its positive move and retreats from the vicinity of the 1.2300 mark, or a one-month high touched earlier this Monday. The pair slides back below the 1.2200 round figure during the early European session and is pressured by a solid US Dollar recovery from a fresh multi-month low. Worries about a deeper global economic downturn continue to keep a lid on any optimism. This is evident from the cautious mood around the equity markets, which is seen driving some haven flows towards the greenback. Read more...
GBP/USD pulls back from one-month peak in the 1.2220s ahead of speech by BoE’s Bailey
The GBP/USD pair is losing ground in the early European Session on Monday, falling to around 1.2180 at the time of writing. After making a new high for the month a few hours earlier the pair has suddenly reversed course and is dropping rapidly; it is not down 0.36% for the day.
The US Dollar has rebounded from a fresh seven-month low as thin liquidity due to it being a public holiday, Martin Luther King Jr. Day, in the US, as well as technical selling at the key 200-week Simple Moving Average (SMA) cause heightened volatility. After bidding the market ever higher, traders appear to be putting the brakes on overdone US Dollar shorts. Nevertheless, a growing acceptance that the Fed will soften its hawkish stance maintains pressure on the world's reserve currency and dims its outlook. Read more...
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