- GBP/USD retreats slightly after failing to breach the 200-day moving average, stabilizing near the 1.2370 mark.
- The US Dollar faced a significant drop following a less hawkish stance from Fed Chair Jerome Powell and a softer-than-expected Nonfarm Payrolls report, fueling speculation of an end to rate hikes.
- In the UK, attention turns to the upcoming Q3 GDP data, which is anticipated to show a contraction, highlighting economic challenges.
GBP/USD clings to earlier gains, though it remains trading below the 1.2400 figure after testing the 200-day moving average (DMA) at 1.2433, but failure to clear it, exacerbated a pullback toward the 1.2370 area, almost flat.
British Pound sees a pullback from the 200-DMA as market mood lifts, but central bank policies keep traders cautious
Equities in the United States (US) portray an upbeat market mood, as participants expect most global central banks to end their tightening cycle. Particularly the US Federal Reserve (Fed), which held rates unchanged and kept the door open for additional tightening. However, Fed Chairman Jerome Powell failed to deliver hawkish comments after the US central bank decision pressured the Greenback, which tumbled more than 1.40% last week.
Last Friday’s soft US jobs report increased the odds for the Fed done with rate hikes, as the economy added 150K jobs in October, revealed the US Nonfarm Payrolls report delivered by the Bureau of Labor Statistics (BLS). That, along with weak PMI readings, reignited fears the economy could hit a recession despite “soft landing” talks across Federal Reserve officials.
On the UK front, the docket will feature GDP for Q3, with most economists expecting a negative reading as companies cut expenses on dented demand. Recently, the Bank of England’s (BoE) Chief Economist Huw Pill commented they might be able to reconsider its stance on interest rates. He spoke during an online presentation organized by the BoE.
GBP/USD Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds steady above 0.6850 ahead of Fedspeak
The AUD/USD pair flatlines near 0.6880 during the early Asian session on Wednesday. However, the fear of wider war in the Middle East might boost the safe-haven flows and support the Greenback for the time being.
EUR/USD bounces off 1.1050 on Tuesday decline
EUR/USD tumbled six-tenths of one percent on Tuesday, finding a minor bounce from the 1.1050 level as geopolitical tensions and souring economic data crimp risk appetite flows, bolstering the Greenback and dragging the Fiber to its lowest prices in almost a month.
Gold prices soar on safe-haven demand amid Middle East conflict
Gold price rallied over 1% on Tuesday amid growing tensions in the Middle East as Israel’s attack on Hezbollah spurred Iran’s reaction, which launched nearly two hundred missiles. This sponsored a leg-up in the non-yielding metal, shrugging off overall US Dollar strength.
Ethereum could decline to $2,207 if Middle East war tension escalates
Ethereum and the entire crypto market is in a downtrend on Tuesday following geopolitical tension in the Middle East. Ethereum dropped below the $3,500 psychological level upon news of Iran launching a missile attack on Israel.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.