GBPUSD managed to preserve a major part of the previous week’s upsurge, led by the hawkish BOE interest rate decision, this week. The focus once again shifted back to the Fed tightening outlook, as US inflation hit a fresh 40-year high.
stood out while markets also awaited the UK Q4 GDP release. Meanwhile, BOE Chief Economist Huw Pill said Wednesday, “that a case can be made for a measured rather than an activist approach to policy decisions,” adding “that is what I would label a ‘steady handed’ approach to monetary policy. "The cautious remarks from thepolicymaker combined with the pre-US CPI anxiety kept the risk-sensitive cable on the back foot.
On Tuesday, the UK employment data will be reported, with the ILO Unemployment Rate Claimant Count numbers to be closely eyed. The same day, the US releases the Producer Price Index , although it may offer little trading opportunities for the market participants ahead of Wednesday’s critical UK inflation, US Retail Sales and the January Fed meeting minutes. These events will provide fresh insights on the BOE-Fed monetary policy divergence theme, having a significant impact on cable.
On the flip side, a violation of the 1.3500/1.3520 support could attract sellers and trigger an extended decline toward 1.3450 .Despite the fact that the British pound managed to stay resilient against the dollar this week, experts don't seepushing higher next week. The average target on the one-week view aligns at 1.3520. Moreover, the FXStreet Forecast Poll shows that the selling pressure is likely to remain intact for the next few weeks with a bearish target of 1.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/JPY Weekly Forecast: Are inflation and the Fed in an abusive relationship?USDJPY Weekly Forecast: Are inflation and the Fed in an abusive relationship? January’s inflation report spurred a major rally in Treasury yields that sent stocks reeling and the USDJPY to 116.34 within a point of its five-year high at 116.35.
Read more »
Gold Weekly Forecast: Is gold finally regaining its inflation-hedge status?Gold Weekly Forecast: Is gold finally regaining its inflation-hedge status? Gold managed to stay resilient despite surging US Treasury bond yields and closed the second straight week in positive territory.
Read more »
EUR/USD Weekly Forecast: Taming inflation, the new global challengeThe USD struggled to recover some of the ground lost post-ECB’s announcement, succeeding partially. The US reported the January Consumer Price Index (CPI), which soared to 7.5% YoY, its highest since February 1982.
Read more »
Weekly Forex ForecastStart the week of February 14, 2022 with our Forex forecast focusing on major currency pairs here. forextrading
Read more »
CoinMarketRecap: Weekly Crypto News on Apple PodcastsIn this week's podcast, we've got the latest on: 1️⃣ The Bitfinex hack 2️⃣ The suspect's rapping career 3️⃣ A crypto boss being fired over an old tweet 4️⃣ Why SHIBA INU surged 5️⃣ Russia abandoning plans to ban BTC Make sure you listen and subscribe! 🚀
Read more »