Economy Forex News

GBP/USD pulls back from two-week highs

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  • GBP/USD’s upward pressure towards 1.3670 fades as the US session begins.
  • Overall, US dollar strength across the board limited the move towards 1.3700.
  • BoE members expressed concerns about inflation, likely could raise rates sooner than expected.

GBP/USD is nearing last week’s highs around 1.3657, trading at 1.3633, up 0.10% during the New York session at the time of writing. The market mood is upbeat, as evidenced by European and U.S. stock indexes posting gains. The exception are the German DAX and the Spanish IBEX 35, which each lost 0.12% and 0.68%.

GBP/USD

MetaNews.

GBP/USD remains at 94.19 as the U.S. dollar index measures the greenback’s performance against six peers.

Earlier in the Asian session, sterling hit a weekly high of around 1.3670. The Bank of England (BoE) made remarks over the weekend that triggered that move upward.

In an interview with the Yorkshire Post, Andrew Bailey, Governor of the Bank of England, said he was concerned that prices accelerated above the central bank’s 2% target, and described inflation as potentially “very damaging”. According to Bailey, “we [the BoE] have to, in a sense, prevent inflation from becoming permanently ingrained.”.

According to Michael Saunders, a member of the Monetary Policy Committee (MPC), markets are pricing in an earlier interest rate hike than expected as inflation accelerates.

Meanwhile, on the other hand, Goldman Sachs cut the U.S. growth forecast for this year and 2022, blaming the lag on consumer spending. Bank of America said they now expect 5.6% annual growth, down from 5.7%, and 4% in 2022, down from 4.4%.

Macroeconomically, the UK is expecting growth of 3.2% for NIESR (3M) GDP in September. Elsewhere, the U.S. is in observation of Columbus Day.

ADDITIONAL LEVELS

OVERVIEW
Today’s Last Price 1.3633
Daily Rate 0.0018
Today’s Daily Rate % 0.13
Daily Open 1.3615

TRENDS
20 Daily SMA 1.3656
50 Daily SMA 1.3743
100 Daily SMA 1.3845
SMA of 200 Daily 1.3844

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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