The GBPUSD price jumped sharply after the latest Bank of England (BOE) interest rate decision. As was widely expected, the bank decided to implement another 25 basis point rate hike. This made it the first time since 2004 that the bank has implemented back-to-back rate hikes. The bank attributed this hike to the strengthening of the economy and the fact that inflation has jumped to the highest level in 30 years. Analysts now expect that the bank will implement more rate hikes this year. Some even believe that the bank will hike interest rates by 1.5% in September. Another key policy by the BOE was to end its bond-buying program.
American equities slumped in the premarket session as investors reflected on the weak quarterly results by Meta Platforms. In its results, the company said that its revenue rose at a slower pace than expected. It also attributed the performance to the growing popularity of TikTok and the supply shortages that affected most small businesses. The company also complained about the recent iPhone upgrade that gave more users more power about privacy. Meanwhile, Spotify share price slumped by 20% in the premarket session after it reported weak quarterly results. The company has been under pressure because of Joe Rogan’s podcast.
The EURUSD pair declined after the latest interest rate by the European Central Bank. The bank decided to leave interest rates unchanged as was widely expected. The bank also decided to continue with its asset purchase program. It intends to buy 40 billion euros of assets per month in the second quarter of this year. On interest rates, the ECB committed to leave rates at the current level until it sees its inflation at 2%. This decision was different from what the Fed and the BOE did this month.
GBP/USD
The GBPUSD pair rose to a high of 1.3627 after the latest decision by the Bank of England. This was the highest price that the pair has been since January 20. It managed to move above the 25-day moving average and the first support of the Andrews Pitchfork tool. It is also approaching the 23.6% Fibonacci retracement level. Therefore, there is a likelihood that the pair will continue its bullish trend during the American session.
NAS100
The Nasdaq 100 futures declined sharply after the latest earnings by Facebook and Spotify. The index slipped to a low of $14,822, which was the lowest level since last week. It is slightly below the middle line of the Bollinger Bands while the Relative Strength Index has been retreating. It is also along the 50% retracement level. Therefore, the index will likely continue falling today.
EUR/USD
The EURUSD pair declined after the latest ECB decision. It is trading at 1.1275, which is slightly below its highest level this week. The pair has moved into the Ichimoku cloud on the four-hour chart. It has also moved below the 50% Fibonacci retracement level. Still, there is a likelihood that it will bounce back during Christine Lagard’s press conference.
General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
Recommended Content
Editors’ Picks
EUR/USD trades at yearly lows below 1.0500 ahead of PMI data
EUR/USD stays on the back foot and trades at its lowest level since October 2023 below 1.0500 early Friday, pressured by persistent USD strength. Investors await Manufacturing and Services PMI surveys from the Eurozone, Germany and the US.
GBP/USD falls to six-month lows below 1.2600, eyes on key data releases
GBP/USD extends its losses for the third successive session and trades at a fresh fix-month low below 1.2600. This downside is attributed to the stronger US Dollar (USD) as traders continue to evaluate the Fed's policy outlook following latest data releases and Fedspeak.
Gold rises toward $2,700, hits two-week top
Gold continues to attract haven flows for the fifth consecutive day and rises toward $2,700. XAU/USD continues to benefit from risk-aversion amid intensifying Russia-Ukraine conflict. Investors keep a close eye on geopolitics while waiting for PMI data releases.
Ripple surges to a new yearly high; XRP bulls aim for three-year high of $1.96
Ripple extends its gains by around 10% on Friday, reaching a new year-to-date high of $1.43 and hitting levels not seen since mid-May 2021. The main reasons behind the rally are the announcement that the US SEC's Chair Gary Gensler will resign and the launch in Europe of an XRP ETP by asset management company WisdomTree.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.