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GBP/USD Outlook: Sterling Cements Key Technical Level Ahead of FOMC

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GBP/USD: Pound - Dollar Rate, Chart, Forecast & Analysis

Jul 4, 2022 | DailyFX
Richard Snow, Analyst


  • GBP maintains bleak outlook – comments from BoE Bailey
  • GBP/USD Technical Levels Considered (1.2000 remains key)
  • FOMC minutes, NFP provide potential sources of volatility this week


The ECB’s version of the Fed’s Jackson Hole Economic Symposium took place last week, seeing a number of influential central bankers making an appearance. Jerome Powell stole the show as far as markets were concerned as he opened the door to rate hikes into 2023, maintaining lofty rate hike expectations and stoking demand for USD.

As far as the Bank of England (BoE) is concerned, Governor Andrew Bailey reiterated concerns around the slowdown in growth alongside an anticipated rise in inflation ahead. Bailey warned that the Bank would act more forcefully in the event inflation persists. The depreciation of the pound worsens the current cost of living squeeze in the UK for imported goods.

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