![]() ![]() The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. Ready to trade our daily Forex forecast? Here’s a list of some of the top forex brokers UK to check out. On the other hand, the bears will target profits at around 1.2394 or below at the support at 1.2160. Therefore, the bulls will target long-term profits at around 1.2844 or higher at the resistance at 1.3069. This indicates a slight bullish long-term bias in market sentiment. On the long term, and according to the performance on the daily chart, it appears that the GBP/USD is trading within a bullish channel formation. On the other hand, the bears will target potential pullback profits around 1.2601 or lower at support 1.2562.Therefore, the bulls will look forward to riding the current wave of gains towards 1.2682 or higher to the resistance 1.2719.This indicates a significant short-term bullish bias in market sentiment.On the near term, according to the performance on the hourly chart, it appears that the GBP/USD is trading within a bullish channel formation.Technical analysis of the British pound against the dollar: Overall, the Fed's reticence to call for an end to the tightening cycle should help with some demand for the dollar, which has been under pressure for most of June. Inflation has been on a downward trend in recent months but the Fed views the situation as risky and will loath to send "crystal clear" for fear of undoing its recent work. This is a clear decline in market prices to start rate cuts as soon as the year is out and certainly by 2024 It is the communication that the Fed feels is necessary to ensure that credit conditions do not ease and stoke inflationary pressures. Almost all policymakers thought some additional increases this year were "appropriate," Powell added. However, Fed Chairman Jerome Powell said in his address to the media that the journey to reach the 2.0% inflation target still has some way to go, suggesting that this is not necessarily the end of the road for the rate hike cycle. When determining the stability of additional policy that may be appropriate to return inflation to 2 percent over time, the committee will take into account the cumulative tightening of monetary policy and the slowdown with which monetary policy affects economic activity and inflation. “Keeping the target range steady at this meeting allows the committee to assess additional information and its implications for monetary policy. The Fed said the decision to pause the rate hike cycle was necessary because time was needed to see the full impact of previous hikes on the economy. ![]() Also according to the trading, the EUR/USD exchange rate was higher than 1.0863 before the decision, but it fell to 1.0809 in the aftermath. ![]() Overall, GBP/USD hit a fresh 13-month high of 1.2699 in the run-up to the Fed's decision, but backed away from the initial decision and direction in price action that Sterling warned in a preview piece. This could be seen as a surprise policy event as the markets were looking for a complete end to the cycle or a potential rally of an additional 25bps at most.Ĭommenting on this, Ian Shepherdson, chief economist at Pantheon Macroeconomics, explains, “The points for this year show that two members do not expect further hikes Four expect one hike, nine expect two hikes, two expect three hikes, and the one who did not read the memo about the delays and cumulative policy impacts expects four.” Susanna Streeter, Head of Money and Markets at Hargreaves Lansdown, says: “The new dot plot has sparked a sell-off in equities on Wall Street with much enthusiasm subsiding recently, as investors evaluate the many hurdles ahead before an interest rate cut looms on the horizon. Overall, projections for the future path of interest rates as envisaged by the FOMC - known as a dot chart - showed that policy makers believe they will be required to deliver another 50 basis points to raise US interest rates by the end of the year. ![]()
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