Currencies

The pair finds stability after last week’s intense price action, as the UK Chancellor confirmed that he will not go ahead with the abolishment of the top tax rate bracket

A bearish turn of the EMAs and stochastic (black ellipses) at this confluence may prove problematic. If the stochastic crosses and heads towards the 20 levels, the pressure will be building downwards. Moreover, if it reaches and maintains (red arrow), GBPUSD will be in danger of another leg down.

The pair runs its seventh straight profitable week, as markets brace for today’s PCE inflation from the United States

Sentiment takes another nosedive today and Wednesday’s relief rally falters, as markets brace for key economic data from the US, later in the day and on Friday

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…