Powell served as an assistant secretary and as undersecretary of the Treasury under President George
H.W. Bush.
Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBP/USD-bullish contrarian trading bias. This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. Gold price struggles for a decisive move despite a slightly hotter inflation report. The US Dollar demonstrates a volatility compression as higher headline CPI failed to boost Fed hawks.
British Pound / U.S. Dollar
Interest rates are also working in favor of the British currency, but economists warn they may soon hit economic growth.Interest rates are also working in favor of the British currency, but economists warn they may soon hit economic growth. It was another down year for the GBP/USD pair but the severity of the decline was intense mainly due to the monetary policy divergence between the US Federal Reserve (Fed) and Bank of England (BoE) in the first half of 2022. Meanwhile, the failure of the United Kingdom (UK) political system collaborated with the collapse of the Pound Sterling against the United States Dollar (USD) in the second half of the year. The British Pound (GBP) continues with its relative underperformance in the wake of diminishing odds for a more aggressive policy tightening by the Bank of England (BoE), which, in turn, is seen acting as a headwind for the GBP/USD pair. The Office for National Statistics reported that Britain’s economy shrank at the quickest pace in seven months, by 0.5% in July, reviving recession fears.
The US Bureau of Labor Statistics (BLS) reported that the headline US CPI surged to 3.7% on a yearly basis in August from 3.2% in July, slightly above expectations for a reading of 3.6%. The monthly print, however, matched forecasts and came in at 0.6% during the reported month. Meanwhile, the core CPI, which strips out volatile items like food and fuel, matched estimates and rose by the 4.3% YoY rate. In the absence of any major surprises, the data ensures that the Fed will maintain the status quo.
Data summary
GBPUSD, often referred to as “The Cable”, a foreign exchange term used to describe the British pound vs the US dollar, is one of the oldest traded currency pairs. In July of 1866, after an earlier failed attempt, the first reliable exchange rate between the British pound and the US dollar was transmitted between the London and New York Exchanges. Optic fibre cables accompanied by satellites handle the Transatlantic communications today.
GBP/USD consolidates its losses above the 1.2500 mark following UK labor data – FXStreet
GBP/USD consolidates its losses above the 1.2500 mark following UK labor data.
Posted: Tue, 12 Sep 2023 06:10:40 GMT [source]
Traders now look to the US key US macro data – the Producer Price Index (PPI) and Retail Sales figures. Apart from this, the post-ECB volatility should influence the GBP/USD pair. USD/JPY meets with a fresh supply on Thursday and is pressured by a combination of factors. Bets that the BoJ will end its ultra-easy monetary policy underpin the JPY and weigh on the pair. The uncertainty over the Fed’s rate-hike path prompts USD selling and contributes to the decline. BoE Governor Andrew Bailey last week said interest rates might still rise further due to stick price pressures, but the central bank is “much nearer” to ending its tightening cycle.
ECB NEWS & ANALYSIS
The currency pair is just at the 50-day moving average intersection, pressing higher for a second consecutive day.The currency pair is just at the 50-day moving average intersection, pressing higher for a second consecutive day. The GBPUSD (or Pound Dollar) currency pair belongs to the group of ‘Majors’, a way to mention the most important pairs in the world. The pair is also called ‘The Cable’, referring to the first Transatlantic sole proprietorship examples in india cable that was crossing the Atlantic Ocean in order to connect Great Britain with the United States of America. This term originated in the mid-19th century, which makes it one of the oldest currency pairs. GBP/USD remains below major resistance on the 89-month moving average and the Ichimoku cloud on the monthly charts, coinciding with a downtrend line from 2014, suggesting the long-term downtrend is yet to reverse.
Jerome Powell took office as chairman of the Board of Governors of the Federal Reserve System in February 2018, for a four-year term ending in February 2022. His term as a member of the Board of Governors will expire January 31, 2028. Born in Washington
D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and earned a law degree from Georgetown University in 1979.
EUR/GBP: Still holding above Q2-2023 support line
This, along with signs that the UK labour market is cooling, puts pressure on the BoE to pause its rate-hiking cycle. Forex markets are in for a treat today with Jay Powell taking the stage for the Fed’s interest rate decision.Forex markets are in for a treat today with Jay Powell taking the stage for the Fed’s interest rate decision. But the pound didn’t catch on the good news.Wages logged a record pace of growth and beat lowering inflation. From December 19th, 2022, this website is no longer intended for residents of the United States.
- Forex markets are in for a treat today with Jay Powell taking the stage for the Fed’s interest rate decision.Forex markets are in for a treat today with Jay Powell taking the stage for the Fed’s interest rate decision.
- The Office for National Statistics reported that Britain’s economy shrank at the quickest pace in seven months, by 0.5% in July, reviving recession fears.
- GBPUSD, often referred to as “The Cable”, a foreign exchange term used to describe the British pound vs the US dollar, is one of the oldest traded currency pairs.
- The key focus now shifts to UK GDP for July – expected 0.4% on-year, down from 0.9% in June.
Inflation in the US, however, remains well about the Fed’s stated 2% target. Moreover, the recent rally in Crude Oil prices has been fueling concerns about the inflation outlook and https://1investing.in/ might force the Fed to keep interest rates higher for longer. This could help limit any deeper USD losses and keep a lid on the GBP/USD pair.
The key focus now shifts to UK GDP for July – expected 0.4% on-year, down from 0.9% in June. The three-month average, however, ticked up to 0.3% in July from 0.2% previously. The British pound is testing crucial support against the US dollar ahead of UK GDP data due later Wednesday. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. The UK currency is top of mind for many forex traders, but interest rates are so far failing to give a proper boost.The UK currency is top of mind for many forex traders, but interest rates are so far failing to give a proper boost.
