Jump to content

GBP/USD Still Pressured Despite Pullback As USD Markets Look To Fed


Recommended Posts

GBP/USD, BANK OF ENGLAND, US FEDERAL RESERVE, INFLATION -TALKING POINTS

  • GBP/USD hit lows not seen since the mid-1980s last week.
  • It has bounced since, but that’s a USD story rather than hope for GBP respite.
  • The market may have decided sterling has suffered enough for now.

GBP/USD Still Pressured Despite Pullback As USD Markets Look To Fed

 

The British pound has pulled back quite sharply from last week’s near four-decade low against the US dollar, but remains very short of positives and its long downtrend remains in place.

GBP/USD fell last week towards the $1.14 handle last seen in the distant days before the Plaza Accords of 1985, themselves aimed at reining in a similarly rampant US dollar.

This is a big week for economic data, but that’s only likely to underline the strength of the US’ economy’s position compared to that of the UK, and indeed most of Europe, where inflation remains a huge challenge and war in Ukraine paralyses crucial energy markets.

The pullback seen in many currencies against the dollar in the last few days is likely mere respite before important US inflation numbers due on Tuesday. August’s core inflation rate is expected to come in at 6.1%, above the 5.9% seen in July. Should it do so, the market will likely continue to price in aggressive interest rate rises from the Federal Reserve, to the detriment of the dollar’s rivals, including sterling.

Sep 12, 2022 | DailyFX
David Cottle, Analyst
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      23,599
    • Total Posts
      96,961
    • Total Members
      44,170
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Jag
    Joined 03/12/23 16:16
  • Posts

    • Trade statistics of the 'Triangle 8th' system as of 12/03/2023 Gain: 102.00% Profit: 781.52 USD Funds: 1,400.18 USD Balance: 1,781.52 USD Beginning deposit: 1,000.00 USD Withdrawals: 0.00 USD Top-ups: 0.00 USD
    • Name of stock - Vox Royalty   Name of Stock Exchange - NASDAQ   Leverage or Share dealing - Leverage   Ticker - VOXR   Country of the stock - Usa   Market Cap - 100M
    • It is a best practice to buy dip and sell high but this strategy mostly doesn’t go as planned because you can’t predict the final bottom. Some traders BTD anticipating a potential pullback which mostly doesn’t happen and this force some into panic selling. DYOR is mostly advisable but some people fail to know which analysis they should focus more on. When deciding to hold a token for a long-term FA is very important and its cardinal point should be thoroughly scrutinized before making such a decision. These points include; Whitepaper, Road map, and Usecase. These points have a huge impact on deciding how long to hold a project and also booast your confidence in the project's bullish potential.  The first principle in this industry is “invest what you can afford to lose" though many neglect this principle as such when a project is going through a price correction they panic sell and sell at a huge lost. Most normal regret their decision later when they see the project back on track. Once you adhere to the first principle you hardly fall victim to panic sales. Note that it is mostly not advisable to hold meme tokens una less you are convinced because meme goes with the hype and finds it hard to retest its ATH once the hype is over.  Anyway what are your trading strategy and principles you adhere to most?
×
×
  • Create New...
us