GBPUSD SIGNAL 17-06-22 : GBPUSD struggles to find demand near 1.2350, Powell eyed.

0
280
GBPUSD SIGNAL

GBPUSD SIGNAL 17-06-22 : GBPUSD struggles to find demand near 1.2350, Powell eyed.

  • GBP/USD stalls its recovery mode just below 1.2350.
  • US dollar holds the rebound despite the upbeat market mood.
  • Fed-BOJ policy divergence keeps GBP bulls on the defensive.

GBPUSD is fading its recovery momentum from the daily low of 1.2253, as bulls run into strong resistance just shy of the 1.2350 barrier.

GBPUSD SIGNAL : The further upside in the pair remains capped, as investors reassess the BOE’s gradual approach to policy tightening, as it hiked the key rates by 25 bps on Thursday. Meanwhile, the Fed has left doors open for a 75 bps lift-off in July after delivering a 75 bps increase on Wednesday. The BOE remains way behind the curve when compared to the US central bank, which remains a drag on the pound.

The 10-year UK T-bond yield is down 1.5% and the 10-year US T-bond yield is rising 1%, making it difficult for the pair to preserve its bullish momentum, FXStreet’s Senior Analyst, Eren Sengezer, explains.  

GBPUSD SIGNAL : Earlier on, the recovery in the major was triggered by the return of risk flows in the European session, reflective of the 1% rally in the S&P 500 futures. Markets ignored the renewed upside in the US dollar, as nerves settle over fears over a potential recession, helping lift the overall risk sentiment.

Looking ahead, the BOE Quarterly Bulletin will be eyed for fresh insights on the economy and monetary policy. Later in the NA session, Fed Chair Jerome Powell’s speech will stand out amid other minority US economic releases.

Confuse Which Broker is best ? , Here you can find the best regulated broker.

LEAVE A REPLY

Please rate*
Please enter your comment!
Please enter your name here