GBPUSD MARKET UPDATE :GBP/USD steadily climbs to 1.1145-50 area, focus remains glued to US CPI report.



GBP/USD steadily climbs to 1.1145-50 area, focus remains glued to US CPI report

  • GBP/USD attracts some buying for the second successive day amid a modest USD downtick.
  • The risk-on impulse undermines the safe-haven buck and offers some support to the major.
  • Aggressive Fed rate hike bets should limit the USD losses as the focus remains on the US CPI.
  • Confusion over the BoE’s emergency bond-buying program further warrants caution for bulls.

gbpusd market update :The GBPUSD pair attracts some buying in the vicinity of the 1.1050 area on Thursday and hits a fresh daily high during the first half of the European session. The pair is currently trading just above the mid-1.1100s, up for the second straight day and might be looking to build on the previous day’s goodish rebound from a nearly two-week low.

The US dollar edges lower for the second straight day and turns out to be a key factor lending support to the GBP/USD pair. A recovery in the global risk sentiment – as depicted by a generally positive tone around the equity markets – is undermining the safe-haven greenback. Apart from this, the USD downtick lacks any obvious catalyst and is likely to remain limited amid hawkish Fed expectations.

gbpusd market update :The markets seem convinced that the US central bank will stick to its aggressive policy tightening path and have been pricing in another supersized 75 bps rate hike in November. The bets were reaffirmed by the FOMC meeting minutes released on Wednesday, which showed that officials were committed to raising interest rates to curb inflation. This remains supportive of elevated US Treasury bond yields.                                                                                          Confuse Which Broker is best ? , Here you can find the best regulated broker


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