The pound benefitted from last week’s dollar selloff but the pair finds early resistance in a quiet week. Fed speakers emerge to fill the void with UK GDP on Friday
The Fed acknowledged the strong performance of recent US fundamental data by upgrading the word used in the statement to describe the uptick in growth from ‘solid’ to ‘strong’. However, markets chose to prioritise the mention of ever tightening financial conditions - via elevated bond yields - and Powell’s general dismissal of the Fed dot plot efficacy.
Therefore, the start of this week may pose a challenge to GBP/USD if the dollar selloff stalls. Something else to note will be Fed officials and whether they issue a response to the apparent risk off sentiment. Jerome Powell makes two appearances this week, the most notable on Thursday where he will take part in a panel discussion.with the ratio of traders long to short at 1.09 to 1.As mentioned, Fed representatives will have their say with most appearances scheduled for Tuesday and Wednesday.
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