GBP/USD aims to recapture 1.2300 as higher UK CPI solidifies rate hike from BoE, USD retreats
The GBP/USD pair is looking to recapture the round-level resistance of 1.2300 in the Asian session. The Cable has rebounded after a vertical correction to near 1.2260 as the street anticipates that the absence of hawkish interest rate guidance from Federal Reserve (Fed) chair Jerome Powell while addressing the economy in the monetary policy meeting reflects that the Fed is close to ending its policy-tightening spell.
S&P500 futures have generated some gains in the Asian session after a plunge on Wednesday as Fed Powell has confirmed that the battle against the sticky United States inflation is continued. Fed Powell has said no to rate cuts in 2023 as taming the stubborn inflation is still a hard nut to crack. Apart from that, US Treasury Secretary Janet Yellen’s statement that the government "is not considering insuring all uninsured bank deposits," renewed fears of a banking sector meltdown. Read more...
GBP/USD shows a vertical decline to near 1.2260 as Fed’s Powell denies rate cuts in 2023
The GBP/USD pair has surrendered the majority of its gains generated after the Federal Reserve (Fed) announced a 25 basis point (bp) rate hike to 4.75-5.00% in its monetary policy meeting. The Cable has dropped vertically after printing a fresh six-week high at 1.2335 as Fed chair Jerome Powell has cleared that the central bank is not expecting any rate cut this year.
The main agenda of the Fed that inflation has to bring down to the desired rate of 2% is intact and the central bank would do ‘whatever it takes’ required for the same. Fed Powell has cleared, "Recent liquidity provision for rescuing the collapse of commercial banks that has increased balance sheet size is not intended to alter the stance of monetary policy." Read more...
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