GBP/USD Receives Breather From Fed Chair’s Comments

Updated:

Checkmark

Service for copy trading.

Checkmark

High profitable signals.

Checkmark

24/7 cryptocurrency trading.

Checkmark

10 minute setup with significant benefits.

Checkmark

79% Success rate.

Checkmark

Up to 40 trades per month.

Checkmark

Monthly subscriptions begin at £58.



The GBP/USD pair has been heavily impacted by the recent events in the FX markets. As the US economy and Federal Reserve guidance continue to drive currency movements, the pound has struggled to keep pace with the strong USD rally of last week. However, recent comments from Fed Chair Jerome Powell have offered some relief for the GBP/USD pair.

GBP/USD Daily Chart

Powell’s speech yesterday echoed his message from last week’s rate decision, where he emphasized the need for continued disinflation but hinted at the possibility of further interest rate hikes if the labor market remains strong. The Fed’s tight labor market, as noted by Powell and the Fed’s Kashkari, could lead to higher inflationary pressures, which may result in further interest rate hikes.

On the UK side, the upcoming strike action by civil servants on March 15th remains a concern for the government. The Chancellor of the Exchequer, Jeremy Hunt, is expected to deliver his fiscal plan on the same day and may face pressure to reassess pay settlement issues. The strike action could disrupt the UK economy and raise questions about the UK leadership, which is bearish for the pound.

GBP/USD to Face Renewed Bearish Pressure

Overall, the GBP/USD pair is likely to face further pressure in the coming weeks as the market continues to closely monitor the US economy and Federal Reserve guidance, as well as any potential disruptions from the UK strike action. Despite these challenges, the GBP/USD pair may find some relief in the coming days as Powell and the Fed continue to offer insight into their plans for future rate hikes and inflationary pressures.

 

You can purchase Lucky Block here. Buy LBLOCK

 

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.