GBP/USD Tries for a Profitable End to a Busy Week
The United Kingdom was in the spotlight this week, with a series of economic data and the government’s budget, but the pair had limited reaction
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The United Kingdom was in the spotlight this week, with a series of economic data and the government’s budget, but the pair had limited reaction
The pair had one of its best days of the year on Wednesday as a result of the soft inflation figures from the US and extends its gains today, past key tech levels
The Fed and BoE both hike by 75 bps but their tonality contrast with each other. RBA shows conservativeness, with central bank signs of slowing down in some regions. NFP leads to an odd market reaction and critical inflation data this Thursday. Into this mix, we also have the US mid-terms. All this and more.
The commodity opened the new week on the back foot amidst trade worries and China’s commitment to the zero-Covid policy
The central bank raised rated by 75 basis points, its largest move in thirty-three years, but softened its language as it expects prolonged recession
A policy rate above neutral is, in effect, a contractionary monetary policy. Given that the Fed may only have just hit neutral, the Fed's hawkishness is understandable. Chair Powell admitted as such, saying that "the level of interest rates will...be higher than previously expected."
The US Federal Reserve delivered another 75 bps rate increase and pointed to a moderation in the pace of tightening, but ruled out a pause, sparking two-way action and volatility in markets
Australian CPI Inflation climbed to the highest levels since 1990 in the third quarter of the year (y/y), helping AUD/USD extend Tuesday’s advance
Oil prices are subdued at the start of this week, unable to get a lift from Monday’s strong Q3 GDP from the world’s second largest consumer
After a tumultuous week and U-turns from the British government, the newly appointed finance minister, announced further changes to the fiscal plans
Yesterday's CPI print surprised to the upside. Headline CPI came in at 8.2% y/y against an expectation of 8.1% y/y. However, core CPI is up 6.6% from a year ago. This print matched the previous release and is the fastest rate of change since 1982.
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