GBP/USD bulls knocked down a peg as Ukraine crisis intensifies By ross_burland GBPUSD Ukraine NFP Fed BOE
e makings of a breakthrough in Ukraine & Russian peace talks. However, the optimism over Ukraine-Russia peace talks waned on Wall Street and concerns over a recession are growing due to the prospect of a sharp rise in interest rates that is expected to hurt economic growth.GBP is considered as being a risky currency and as such, it is coming under renewed pressure on Wednesday. The pair has started to slide from a high of 1.3182 that had been marked in the early New York trade.
“As a big net importer of manufactures and commodities, it’s doubtful that the UK has ever experienced an external hit to real national income on this scale.” ''WIRP suggests a hike at the next meeting May 5 is fully priced in, with only 25% odds of a 50 bp move then vs. 50% at the start of this week. Swaps market sees the policy rate at 2.25% over the next 12 months, up from 2.0% at the start of last week. Risks of another 25 bp of tightening over the following 12 months have now been priced out,'' the analysts added. data will take centre stage as a meanwhile distraction to the Ukraine crisis this Friday.