GBP/USD Goes into Short Hibernation Ahead of Us Fed Decision
Login

GBP/USD Goes into Short Hibernation Ahead of Us Fed Decision

Estimated Reading Time: 2 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:


The Federal Reserve’s decision is expected to result in a 75 basis point rate hike, according to the majority of analysts, hence, the GBP/USD remains muted amid a tumultuous trading session. However, the majority of analysts anticipate some clarification from the Fed regarding the future course of interest rates. As a result, the GBP/USD exchange rate is swinging between gains and losses at 1.1479.

GBP/USD Daily Chart

Indicators on Wall Street are trading in the negative, reflecting the uncertainty of investors. According to US jobs figures, primarily from the private sector, hiring climbed by 239K in October, exceeding the upward revision of 192K for September and exceeding expectations.

According to the survey, workers who changed occupations saw an increase in pay of 15.2%. As wage growth is one of the Fed’s primary priorities, this would likely keep prices higher and maintain inflationary pressures.

The Federal Reserve may continue to come under pressure as long as the S&P and ISM Manufacturing PMIs on Tuesday stay in expansionary territory, core inflation readings are trending higher, and the ADP report is released. Data dependency may be the wisest course of action, even though the article published in the WSJ magazine on October 21 established the foundation for a slower pace of rate increases.

GBP/USD Traders on the Lookout for Clues from US Fed and BoE

Investors should nonetheless prepare for Federal Reserve Chairman Jerome Powell’s news conference, which will be closely watched for any potential Fed reversal.

Aside from this, the Bank of England’s (BoE) monetary policy meeting on Thursday continued to support the pound sterling. According to money market futures, the BoE will increase rates by 75 basis points to 3%. Because the fiscal package was postponed until the end of November by the new Prime Minister Rishi Sunak and the country’s Chancellor Hunt, it is noteworthy that the BoE will update its projections at this week’s meeting.

 

You can purchase Lucky Block here. Buy LBLOCK

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • 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
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News