Business

USD, GBP, EUR / GBP Analysis and News

USD, GBP, EUR / GBP Analysis and News

  • NFP Less impact in light of Fed action
  • GBP Edging towards YTD lows
  • EUR / GBP A better way to weaken the weaknesses of the GBP

U.S. dollar: With the long-awaited Fed taper decision here, the focus shifts to the 2022 interest rate outlook. However, the NFP tends to attract the attention of traders every month given the Fed’s policy implications in the light of the Fed’s decisions. By the way, I think today’s NFP will be a more calm event. Of course, work reports unless they deviate from consensus.

U.S. dollar technical

GBP: Not surprisingly, the pound is the worst performance since yesterday’s BoE decision. The place where the shock scenario was realized. Reminders about the scenarios highlighted in the BoE preview.

“”The shock scenario is that the Bank of England will not raise rates based on the market being fully priced for rate hikes at this week’s meeting. Therefore, if this scenario is realized, GBP is at risk of falling to 1.3500 and gilts are encouraged to recover aggressively.“… Link

The pound has been pulling back since the opening of Europe, noting its year-to-date low of 1.3410. Below that, the door to 1.3200-1.3300 opens.

GBP / USD Chart: Daily time frame

USD, GBP, EUR / GBP Analysis and News

Source: Refinitiv

EUR/GBP: That said, the BoE decision was a surprise to anyone trying to mitigate the weaknesses of the GBP, but given that it remains relatively hawkish than the ECB, it’s better to go via EUR / GBP. Appropriate. Technically, 200DMA has been tested, but as the cross approaches the top, it can be depleted around mid-0.86 seconds.

EUR / GBP Chart: Daily Timeframe

USD, GBP, EUR / GBP Analysis and News

Source: Refinitiv



USD, GBP, EUR / GBP Analysis and News

Source link USD, GBP, EUR / GBP Analysis and News

Related Articles

Back to top button