1000 usd to gbp

The British pound has stabilized on Friday, after sustaining huge losses a day earlier. GBP/USD is trading at 1.2342 in the European session, down 0.11%. Earlier, the currency fell to 1.2276, its lowest level since June 2020.

 

BoE warning chills the pound

The BoE dutifully raised interest rates at its meeting on Thursday, but the market reception was a chilly one. GBP/USD plummeted a staggering 2.21% on the day. Investors gave a thumbs-down to the grim message from the central bank, as a fourth straight rate hike in as many meetings became an afterthought.

The BoE’s growth forecast for 2022 remained at 3.75%, but it slashed the 2023 projection from 1.25% to -0.25%. At the same time, the central revised upwards its inflation forecast for Q4 to above 10%, up from 8% in an April forecast. The ‘double-whammy’ of higher rates and a deteriorating economic outlook sent the British pound reeling after the BoE meeting.

The rate decision was a 6-3 vote, with all three dissenters vot

New Zealand dollar (NZD/USD) falls right back down

New Zealand dollar (NZD/USD) falls right back down

Kenny Fisher Kenny Fisher 06.05.2022 10:08
The New Zealand dollar has reversed directions on Thursday and is sharply lower. In the North American session, NZD/USD is trading at 0.6418, down a massive 1.90% on the day.   US dollar rebounds after FOMC  The New Zealand dollar is showing plenty of volatility. NZD/USD surged 1.76% on Wednesday but has coughed up all of those gains today. The US dollar lost a step after the FOMC meeting, even though the Fed hiked rates by 0.50%, which was the largest rate increase in 20 years. The Fed continues to show a hawkish stance. The rate-hike cycle will remain aggressive, with Fed Chair Powell signalling at yesterday’s meeting that the Fed will deliver further 0.50% hikes at the June and July meetings. Yet the markets chose to focus on Powell’s statement that a 0.75% hike was not being “actively considered”. Although Powell didn’t rule out such a move, the markets were nonetheless elated, sending equities up and the US dollar broadly lower. It didn’t take long for the US dollar to recover, particularly against the New Zealand and Australian dollars. Perhaps as significant as the Fed’s rate hike was its announcement to implement quantitative tightening, after years of quantitative easing as part of its accommodative policy. Starting in June, the Fed will sell USD 45 billion/mth in assets, which will climb to USD 95 billion/mth in September. The Fed is betting that it can curb inflation through rate hikes and a balance sheet reduction, while ensuring a soft landing for the economy and avoiding a recession. The New Zealand labour market remains robust, as confirmed by the Q1 employment report. The unemployment rate remained at a record low of 3.2%, matching expectations. Significantly, wage growth, which climbed to 3.1% YoY, its highest level since 2008. The surge in wage growth is sure to raise pressure on the central bank to deliver another 0.50% rate hike at the May 25th meeting, which would bring the Official Cash Rate to 2.0%.     NZD/USD Technical 0.6391 is under strong pressure in support, as NZD/USD is sharply lower. Below, there is support at 0.6325 There is resistance at 0.6519 and 0.6648       This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
British pound (GBP/USD). Sterling falls below 1.23

British pound (GBP/USD). Sterling falls below 1.23!

Kenny Fisher Kenny Fisher 06.05.2022 12:22
The British pound has stabilized on Friday, after sustaining huge losses a day earlier. GBP/USD is trading at 1.2342 in the European session, down 0.11%. Earlier, the currency fell to 1.2276, its lowest level since June 2020.   BoE warning chills the pound The BoE dutifully raised interest rates at its meeting on Thursday, but the market reception was a chilly one. GBP/USD plummeted a staggering 2.21% on the day. Investors gave a thumbs-down to the grim message from the central bank, as a fourth straight rate hike in as many meetings became an afterthought. The BoE’s growth forecast for 2022 remained at 3.75%, but it slashed the 2023 projection from 1.25% to -0.25%. At the same time, the central revised upwards its inflation forecast for Q4 to above 10%, up from 8% in an April forecast. The ‘double-whammy’ of higher rates and a deteriorating economic outlook sent the British pound reeling after the BoE meeting. The rate decision was a 6-3 vote, with all three dissenters voting in favor of a 0.50% rate hike. This surprised the markets, which had expected an 8-1 vote. There is a deep split in the MPC, with Governor Bailey acknowledging after the meeting that an uncertain economic outlook had led to a range of views in the MPC. Such a statement can hardly be expected to instill confidence in the markets. In its policy summary, the BoE signalled that more rate hikes are coming, and also dropped the word “modest” to describe upcoming rate hikes. Yet the markets were not impressed  – the 0.25% was modest, and with the BoE warning about 10% inflation, it’s clear that it will take quite some time before rate hikes do the job and wrestle down sizzling inflation. The US dollar initially lost ground after the Fed rate decision on Wednesday, as investors seized on Fed Chair Powell’s statement that the Fed was not considering a 0.75% rate hike. The greenback has since bounced back, as the markets digest that the Fed plans to be aggressive with further 0.50% hikes in its battle to bring down inflation.   GBP/USD Technical There is resistance at 1.2612 and 1.2719 GBP/USD tested support at 1.2272 in the Asian session. Below there is support at 1.2179           This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.