GBP/USD continues to retrace the decline from earlier this month despite the limited reaction to the UK Consumer Price Index (CPI), but the Federal Reserve interest rate decision may undermine the recent rebound.
halts a three-week decline as it extends the rebound from the yearly low , and the exchange rate may stage a larger recovery over the coming days as it initiates a series of higher highs and lows. rate decision may influence the near-term outlook for GBP/USD as the central bank is expected to deliver another 75bp rate hike, and Chairmanand Co. may prepare US households and businesses for a restrictive policy as the central bank struggles to curb inflation.
In turn, the recent rebound in GBP/USD may turn out to be a correction in the broader trend as the FOMC appears to be on track to implement higher interest rates throughout the remainder of the year, but a shift in the forward guidance for monetary policy may lead to a larger recovery in the exchange rate if the committee looks to take a break from its hiking cycle.
With that said, GBP/USD may continue to retrace the decline from earlier this month should the FOMC lay out plans to keep the Fed Funds rate around neutral, but the exchange rate may struggle to retain the advance from the yearly low if the central bank stays on track to implement additional rate hikes in 2022.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
GBP/USD stumbles from 1.2000 on risk-off impulse and safety flowsGBP/USD stays in positive territory, though downward pressured, once the European Central Bank (ECB) added to the list of global bank authorities shif
Read more »
GBP/USD pares intraday losses, down a little above mid-1.1900s ahead of US PMIsGBP/USD pares intraday losses, down a little above mid-1.1900s ahead of US PMIs – by hareshmenghani GBPUSD Recession EconomicIndicator BOE Currencies
Read more »
GBP/USD reclaims the 1.2000 figure on US PMIs flashing recessionGBP/USD recaptures the 1.2000 figure amidst a fragile market mood, as equities are seesawing of late, due to US S&P Global PMI data, flashing a contra
Read more »
Analysis: R.I.P. forward guidance: Inflation forces central banks to ditch messaging toolIf the U.S. Federal Reserve killed off forward guidance in June, the European Central Bank may have just hammered the final nail in the coffin of a tool officials had long used to provide monetary policy signals to financial markets.
Read more »
USD/TRY stays firmer around yearly high of 17.80, US PMIs, Fed in focusUSD/TRY bulls keep reins around the yearly peak of 17.80, at 17.72 by the press time of early Friday morning in Europe. In doing so, the Turkish lira
Read more »
Canadian Dollar Technical Analysis: CAD/JPY, USD/CAD Rates OutlookThe Loonie has proved in the week following the largest BoC rate hike in history. CAD/JPY is in a bullish breakout from a symmetrical triangle, while USD/CAD continues to trade lower from significant resistance.
Read more »