GBPUSD launches an attack despite eyes on the Fed. The British pound has been on a bullish trend for the past two weeks, with the GBPUSD pair hitting multi-month highs. This upward trend is driven by a mixture of factors, both positive and negative. The inflation outlook in the UK looks promising, with private surveys indicating opulent BOE rates in the future. Brexit developments have made travel to and from Europe easier during the holiday season. The UK banking system has been free of any major crises. On the other hand, the US dollar faces headwinds due to the potential expiration of the US debt ceiling, concerns about the First Republic Bank, and the threat of a potential recession. Despite this, the greenback has posted a weekly gain due to upbeat US data and hawkish Fed bets.
Traders’ Eyes on Fed Rates
The Federal Reserve and Bank of England are scheduled to release significant decisions and data that could impact the future of the GBP/USD pair. The Federal Reserve will convene to discuss monetary policy, while the US jobs report for April could provide a boost. The Bank of England is expected to increase rates following positive inflation indicators from private surveys. Wall Street ended the week positively, with robust equity earnings and slight gains in the US Dollar Index.
The markets are expected to experience volatility in the coming days due to top-tier US data and events. However, it is worth noting that some markets will be closed on Monday, and there will be a lack of major data in the UK. This could potentially provide the GBP/USD pair with an opportunity to recover. Investors should keep a close eye on the Federal Reserve’s monetary policy meeting and the US jobs report for April, as these events will be crucial in determining the fate of the GBP/USD pair. It is important to remain vigilant and informed to make informed decisions in the current market climate.
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