GBP/USD Pressured After the IMF Criticized UK’s Fiscal Package
The International Monetary Fund (IMF) issued a statement on Tuesday, criticizing the government’s recent spending plan and the Pound comes renewed pressure today
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The International Monetary Fund (IMF) issued a statement on Tuesday, criticizing the government’s recent spending plan and the Pound comes renewed pressure today
The pair dropped to fresh twenty year lows on Monday in the aftermath of last week’s hawkish Fed, but reacts higher today, as the greenback shows exhaustion
The bond market has capitulated as yields appreciated. As such, there may be interest in the bond market. If so, this may be the catalyst for the overbought normalisation.
The British Pound took a beating on Friday and extended losses against the greenback, to all-time lows earlier today, but reacts during the European hours
Japanese authorities intervened in the FX market on Thursday to support the Yen, but this may do little to contain the pair's advance, as the BoJ-Fed policy differential is chaotic
The BoE hiked its official bank rate by 50bps to 2.25%. Three of the nine MPC members voted for 75bps, with one member preferring a 25bps move. Furthermore, the central bank expects an 11% inflation rate in October, reduced from 13%. However, the bank statement maintained, "should the outlook suggest more persistent inflationary pressures, including from stronger demand, the Committee will respond forcefully."
Japanese authorities have intervened and defended the yen, stopping a potential capitulation by USDJPY to 150. As a result, selling into the market began near the 145.75 level, pushing the price down to 140.64. This action comes after BoJ's Kuroda reiterated to continue monetary easing, initially sparking a selloff in the yen. Given this, it will be unsurprising if the Japanese Finance Ministry regularly influence price levels over the medium…
The currency pair weakened following an announcement by Russian President Putin of a partial mobilisation of troops, calling on 300,000 reservists. Recently, Russia has lost ground to the Ukrainian forces.
The US Federal Reserve will announce its latest policy decision on Wednesday, with markets pricing in another outsized rate hike and EUR/USD having a mixed week around parity so far
2022 was a fascinating year for the forex market as a collection of unique market drivers stimulated robust action for many currencies around the world. The Russia/Ukraine War and post-COVID-19 monetary policy were two of the largest underpinnings. Also, global recession and disjointed commodities prices impacted many FX pairs. Read on to learn more about five of the most volatile currencies of 2022. While exotic and developing economy monies frequently…
The current inflation tends to have a broad sticky element to it. This price resilience will likely concern the Fed until it shows moderation. However, per the preliminary University of Michigan Inflation Expectations survey, consumer expectations moderated to 4.6% (4.8% - previous). Moreover, the pricing elements from last week's Empire State and Philly Fed Manufacturing Indexes indicate moderation. Therefore, 75bps seems to make more sense at this stage.
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