British Pound falls as US Dollar receives from internal FOMC policy split
GBP/USD loses ground after three days of gains, trading around 1.3450 during the Asian hours on Friday. The pair depreciates as the US Dollar (USD) gains support from a hawkish pause by the Federal Reserve (Fed) and an internal FOMC policy split. Read more…
British Pound Sterling rallies on a hawkish vote the Bank of England immediately talked down
The Bank of England held Bank Rate at 3.75% for a fifth straight meeting on Thursday, and the Monetary Policy Committee (MPC) got there on a 6-3 vote, with three members backing an immediate quarter-point increase against a consensus that had looked for 7-2. GBP/USD trades above 1.3450, up 0.71%, roughly 130 pips above the European morning low short of 1.3350. The advance cut straight through the 50-day and 200-day Exponential Moving Averages (EMA), which have converged just below 1.3400 and have been advertising a range rather than defending one.
The dissent bloc grew by one from June, and the swing factor is not in dispute. Energy prices remain volatile and well above pre-conflict levels, June’s Consumer Price Index (CPI) reading of 2.6% is expected to turn higher as those costs pass through, and the dissenters argue that the longer the shock persists, the greater the risk of second-round effects in wage and price setting. Read more...
British Pound surges on BoE hawkish hold, Yen intervention crushes USD
The Pound Sterling registers gains versus the US Dollar after the Bank of England decided to hold rates unchanged, in a 6-3 vote, while suspected intervention to propel the Japanese Yen weakened the Greenback against most G8 currencies. The GBP/USD trades at 1.3430, up 0.40%.
The foreign exchange markets are experiencing a volatile session as the USD/JPY pair tumbles by over 400 pips so far on Thursday. Consequently, the US Dollar Index (DXY), which tracks the performance of the American currency against six other currencies, collapses by over 0.60%, reaching a 30-day low. Read more…
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