GBP/USD NEXT
The available range is indicated by the blue line
Support 1 20 /its near bottom1 20080
Resistor 1 21233
It is a quiet day ahead for the GBP/USD. There are no UK economic indicators for the markets to consider, with the UK markets closing early for the New Year.
The US Session
It is a quiet day ahead on the economic calendar, with the Chicago PMI for December in focus. Following the market reaction to the modest increase in the US Jobless Claims figure, we may see more sensitivity to the PMI number than usual.
Investors should also look out for any FOMC member commentary. Following the holidays, the markets are looking for a response to the latest private sector PMIs and inflation figures.
The lack of economic indicators will leave the GBP/USD in the hands of market risk sentiment. On Thursday, investor sentiment towards the UK economic outlook pegged the GBP/USD back from a return to $1.21. The lack of stats will likely cap the upside today, with trading volumes likely to be lighter.
Know where GBP/USD is headed?
No MPC members are due to speak today to give the markets a peak at the Bank’s views on the economic outlook, COVID-19, and monetary policy.
The BoE was one of the first central banks to increase rates, BUT YET, we saw the Pound getting pounded down, from the
price area down to the HISTORIC low -of with huge speculation that the GBPUSD
The decline in the GBPUSD was also driven by SIGNIFICANT political chaos. Prime Minister Boris Johnson was replaced in September by Liz Truss, who was replaced in October by Rishi Sunak ,A change of 3 Prime Ministers in the space of 2 months
On 23rd September, UK Finance Minister Kwasi looked to boost the country's economic growth by introducing a series of tax cuts, totaling 45 billion pounds.
However, the market was spooked by the scale of the fiscal giveaway and the immediate reaction was to sell UK govt bonds.
GBPUSD as it crashed price level down to the historical low (23rd to 26th September)
Further decline in the GBPUSD was saved by a quick intervention from the BoE as it pledged an unlimited long-dated bond-buying program to restore stability and orderly market conditions.
uk the rapid change in the Prime Minister, BoE intervention, U-turn in tax policy, and introduction of a new austerity package has had some positive impact on the GBPUSD .
In November, the new Finance Minister Jeremy Hunt released a series of spending cuts and tax rises in an attempt to plug the hole in the public finances.
Inflation in the UK still stands at 10.7% with interest rates at 3.50%. AND there is dissent within the BoE as the most recent rate decision votes indicated that 2 members voted to hold rates at 3.00%
Could the BoE risk a pivot at this point? Is there enough momentum in the current slowdown of inflation growth, that it could reach the BoE's target level?
The US Session
It is a quiet day ahead on the economic calendar, with the Chicago PMI for December in focus. Following the market reaction to the modest increase in the US Jobless Claims figure, we may see more sensitivity to the PMI number than usual.
Investors should also look out for any FOMC member commentary. Following the holidays, the markets are looking for a response to the latest private sector PMIs and inflation figures.
NEXT 2023 outlook
The available range is indicated by the blue line
Support 1 20 /its near bottom1 20080
Resistor 1 21233
It is a quiet day ahead for the GBP/USD. There are no UK economic indicators for the markets to consider, with the UK markets closing early for the New Year.
The US Session
It is a quiet day ahead on the economic calendar, with the Chicago PMI for December in focus. Following the market reaction to the modest increase in the US Jobless Claims figure, we may see more sensitivity to the PMI number than usual.
Investors should also look out for any FOMC member commentary. Following the holidays, the markets are looking for a response to the latest private sector PMIs and inflation figures.
The lack of economic indicators will leave the GBP/USD in the hands of market risk sentiment. On Thursday, investor sentiment towards the UK economic outlook pegged the GBP/USD back from a return to $1.21. The lack of stats will likely cap the upside today, with trading volumes likely to be lighter.
Know where GBP/USD is headed?
No MPC members are due to speak today to give the markets a peak at the Bank’s views on the economic outlook, COVID-19, and monetary policy.
The BoE was one of the first central banks to increase rates, BUT YET, we saw the Pound getting pounded down, from the
price area down to the HISTORIC low -of with huge speculation that the GBPUSD
The decline in the GBPUSD was also driven by SIGNIFICANT political chaos. Prime Minister Boris Johnson was replaced in September by Liz Truss, who was replaced in October by Rishi Sunak ,A change of 3 Prime Ministers in the space of 2 months
On 23rd September, UK Finance Minister Kwasi looked to boost the country's economic growth by introducing a series of tax cuts, totaling 45 billion pounds.
However, the market was spooked by the scale of the fiscal giveaway and the immediate reaction was to sell UK govt bonds.
GBPUSD as it crashed price level down to the historical low (23rd to 26th September)
Further decline in the GBPUSD was saved by a quick intervention from the BoE as it pledged an unlimited long-dated bond-buying program to restore stability and orderly market conditions.
uk the rapid change in the Prime Minister, BoE intervention, U-turn in tax policy, and introduction of a new austerity package has had some positive impact on the GBPUSD .
In November, the new Finance Minister Jeremy Hunt released a series of spending cuts and tax rises in an attempt to plug the hole in the public finances.
Inflation in the UK still stands at 10.7% with interest rates at 3.50%. AND there is dissent within the BoE as the most recent rate decision votes indicated that 2 members voted to hold rates at 3.00%
Could the BoE risk a pivot at this point? Is there enough momentum in the current slowdown of inflation growth, that it could reach the BoE's target level?
The US Session
It is a quiet day ahead on the economic calendar, with the Chicago PMI for December in focus. Following the market reaction to the modest increase in the US Jobless Claims figure, we may see more sensitivity to the PMI number than usual.
Investors should also look out for any FOMC member commentary. Following the holidays, the markets are looking for a response to the latest private sector PMIs and inflation figures.
NEXT 2023 outlook
Comment:
It works well.
Trade closed: target reached