gbp to usd

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

GBP To USD Chart - A Small Step For GBP As It Strenghtens And Reaches Ca. 1.3500

GBP To USD Chart - A Small Step For GBP As It Strenghtens And Reaches Ca. 1.3500

FXStreet News FXStreet News 01.02.2022 15:49
The British pound climbs in the North American session, 0.34%. The market sentiment is mixed as European stocks rise while US futures point towards a lower open. BoE’s 25 basis points rate hike is fully priced in by investors. The GBP/USD remains downward biased, as it failed to breach above the 100-DMA. After ending January with losses of 0.65%, the British pound snaps three-day losses, climbing 0.31%. At the time of writing, the GBP/USD is trading at 1.3495, though retreating from the 100-day moving average (DMA) lying at 1.3514. As depicted by European stock indices rising, the market sentiment is mixed, but US equity futures underpins the cash market towards a lower open. Bank of England (BoE) expected to post back-to-back rate hikes In the meantime, money market futures, as shown per the CME Group BOEWATCH tool, 100% of market participants expect an increase of 25 basis points, from 0.25% to 0.50%. Sources cited by CNBC said that “With the Bank Rate reaching 0.5%, we expect the MPC to confirm that all APF (asset purchase facility) reinvestments will cease following the February decision.” Source: CME Group Meanwhile, the Philadelphia Fed President Harker crossed the wires. He commented that the Fed is not behind the curve, and he expects a rate hike of 25 basis points, four in the year. Concerning the balance sheet reduction, he said that the US central bank could begin the Quantitative Tightening (QT) once the Federal Funds Rates (FFR) hit 1% to 1.25%. The UK economic docket featured the BoE Consumer Credit, Mortgage Approvals for December. The former came at £0.8B in line with expectations, while the latter rose to 71.051K, higher than the 66K foreseen. Concerning the Market Manufacturing PMI Final for January, increased to 57.3, a tick more elevated than the 56.9 estimated, though trailed the previous month 57.9, showing some slowing, due to the Omicron hit. Across the pond, Manufacturing PMI released by IHS Markit and the ISM for January will be closely watched by GBP/USD traders. That alongside the JOLTs Job Opening for December could shed some light, in anticipation of Thursday’s Jobless Claims and Friday’s Nonfarm Payrolls report. GBP/USD Price Forecast: Technical outlook The GBP/USD is downward biased. During the European session, the pair retreated at the 100-day moving average (DMA) at 1.3514, but any downward moves might be capped by the 50-DMA lying at 1.3418. To the upside, the GBP/USD will face resistance at 1.3500, followed by the 100-DMA at 1.3514 and an eight-month-old downslope trendline around the 1.3530-40 region. On the flip side, the 50-DMA at 1.3418 is the first support level, followed by the 1.3400 figure, and then the YTD low at 1.3357.
GBP To USD Shows Greenback Strength And GB's Vulnerability To Russia-Ukraine Tensions

GBP To USD Shows Greenback Strength And GB's Vulnerability To Russia-Ukraine Tensions

Alex Kuptsikevich Alex Kuptsikevich 08.04.2022 09:58
The US dollar works its way up against European currencies, including the British Pound. After a corrective bounce from March 15th to the 23rd, GBPUSD has returned to the downside. Most worryingly, this decline is coming very evenly. It is no longer a speculative flight of capital to safe havens in response to frightening news. The flat downtrend with a succession of lower local highs indicates a capital flight out of European countries. Britain is much less dependent on energy supplies from Russia but still bears an evident loss of economic growth due to the current situation. In addition, as the money hub for Europe, the UK is taking a hit due to worsening business sentiment and tighter financial conditions. The Bank of England's more determined move to raise the bank rate and cut QE is fueling the Pound's rise against the euro. The EURGBP pair is close to 0.8300, near the lower bound of an almost 6-year trading range. And so far, it isn't easy to find a reason to reverse the trend. In the meantime, the Pound still has too little strength to withstand a rising Dollar, whose economy is much less affected by the war in Europe. The inability of GBPUSD to develop a rebound above 1.3160 (61.8% of covid amplitude) sets up for further drawdown with near-term support near 1.2830 (50% of the rally) with the potential for a more profound decline at 1.2500 in the next few weeks.
Want To Exchange 100 GBP To USD? GBP/USD Below 1.3000! (GBP) British Pound Weakens! GBP To USD - 17-Months-Low!

Want To Exchange 100 GBP To USD? GBP/USD Below 1.3000! (GBP) British Pound Weakens! GBP To USD - 17-Months-Low!

Alex Kuptsikevich Alex Kuptsikevich 22.04.2022 09:34
GBPUSD fell below 1.3000 to its lowest level in 17 months due to a weak retail sales report. Sales excluding fuel fell 1.1% after 0.9% in February ONS reports a 1.4% drop in total sales for March after a 0.5% decline a month earlier. Sales excluding fuel fell 1.1% after 0.9% in February and showed a year-on-year decrease of 0.6% - a clear signal of the severity of the current economic situation. Read next: ECB Announcements to Possibly Tighten Monetary Policy Strengthens the Euro. EUR/USD, EUR/GBP, AUD/NZD and EUR/CHF All Increased | FXMAG.COM Consumer demand is migrating from retail to services Rising prices and wages have little impact on retail activity so far, which may prove to be a complication for the Bank of England in further tightening monetary policy. Sales returned to their long-term trend level in March after a significant pullback in the second half of 2020. Consumer demand is migrating from retail to services. Related article: Altcoins: IOTA, Litecoin (LTC) and Cardano (ADA) Threatened? Crypto Markets Lie in The Hands of Regulations and Government Policies? | FXMAG.COM According to the Fibonacci model, the next major stop could be near the 1.26 area Weak sales data interrupted the Pound's consolidation above the 1.3000 area, hoping that the UK economy could digest decisive rate tightening. GBPUSD is renewing multi-month lows, building on the momentum formed a month ago when a rebound in the pair was interrupted. According to the Fibonacci model, the next major stop could be near the 1.26 area, where the 161.8% mark from the initial decline from February to March passes. Read next: (XAGUSD) Price of Silver Vs. U.S Yields, Lumber and Corn Futures Dependent on Demand and Supply | FXMAG.COM  
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.
Pound (GBP) takes a tumble after BoE hike

Pound (GBP) takes a tumble after BoE hike

Kenny Fisher Kenny Fisher 06.05.2022 09:56
The British pound is fading badly on Thursday. GBP/USD has dropped a staggering 2.15% today and has fallen below the 1.24 line for the first time since July 2020. After the BoE decision, market focus has shifted to the elections in Northern Ireland later today. A Sinn Fein victory could weigh on the wobbly pound.   BoE hike fails to impress markets The BoE raised interest rates for a fourth straight time since December, bringing the Official Bank Rate to 1.00%, its highest since 2009. Yet the market reception to the BoE move was decidedly chilly, as the pound has plunged almost 2% today. Why the sour reaction from the markets? The 0.25% was a modest move and it’s questionable if it will have much impact on soaring inflation. In March, CPI rose to 7.0%, up from 6.2%, and the BoE has warned that inflation could surpass 10%. The modest rate hike passed by a vote of 6-3, surprising the markets which had expected an 8-1 vote. Two MPC members called for a 0.50% hike, which reveals a sharp split within the MPC. Governor Bailey admitted after the meeting that an uncertain economic outlook had led to a range of views in the MPC, and such a statement can hardly be expected to instill confidence amongst investors. The BoE cannot be blamed for not being aggressive – it is well into its rate-hike cycle and the policy summary noted that “some degree of further tightening in monetary policy may still be appropriate in the coming months”. In addition, the BoE dropped the word “modest” to describe upcoming rate hikes. Yet the markets appeared to focus on the split vote and the warning from the BoE that the country could face a sharp economic downturn, and the thumbs-down response has sent the pound sharply lower. As expected, the Federal Reserve raised rates at its meeting by a half-point, the largest increase in 20 years. The Fed signalled that it will deliver additional half-point hikes in June and July, with Fed Chair Powell stating that the FOMC was not “actively considering” a 0.75% increase. The Fed is also implementing quantitative tightening with a reduction in the balance sheet. Starting in June, the Fed will sell USD 45 billion/mth in assets, which will rise to USD 95 billion/mth in September. In sharp contrast to the BoE’s hike, the financial markets reacted positively, as investors believe that the Fed’s rate hikes can curb inflation while ensuring a soft landing for the economy and avoiding a recession.     GBP/USD Technical GBP/USD faces resistance at 1.2612 and 1.2719 There is support at 1.2272 and 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.
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.