The Fed rate cutting, if undertaken by today will slower the bullish on USDCHF and USDJPY and may pressure those pairs temporary before they resumed to bullish as previous projection, as attached hereto. But, will not change the bullish term.
The Fed is expected by global economist to cut interest rate for another 0.25 %. The interest rate cutting, if undertaken by the Fed, however will not change current interest rate differential structures but narrowing the interest rate differentials. If the Fed to cut the interest rate them price level adjustment on major currency pairs will be seen BUT will not...
The short to medium term bullish estimation due to the prolonged on the weakening of AUD. At upper ceiling of short term target zone, the GBPAUD could be pressured temporary before the pair to resume to upper ceiling of medium term target zone.
The GBPCAD bullish in medium term by sterilization. The extension from short term to medium term will be seen by the prolonged the weakening of CAD. However, at upper ceiling of short term target zone, price correction could be seen.
The EURGBP is bearish in medium term (not short term) by sterilization and bullish for GBPEUR. The bearish on EURGBP will continue until the lower ceiling of the medium term target zone to be reached or the upper ceiling of GBPEUR for medium term target zone to be reached.
Similar to GBPCHF, the JPY carry traders already initiated the carrying on GBPJPY at the time of BoE initiated the sterilization on GBPUSD above the lower ceiling and retested. The bullish on GBPJPY is driven by the JPY carry trading activity and will continue to upward until the upper ceiling of short term target zone to be reached.
The CHF carry trading already initiated since the BoE initiated the sterilization on GBPUSD above the lower ceiling and retested. The bullish on GBPCHF is driven by CHF carry trading activity and will continue to upward until the upper ceiling of short term atrget zone to be reached.
The current bullish will continue to upward until the upper ceiling of short term to be reached. In addition to Fed's sterilization, the BoE seems also undertaking soft sterilization on GBPUSD, GBPCAD, GBPNZD and GBPAUD and the GBPCHF and GBPJPY by carry trading activity.