Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

GBP/USD extended last Friday’s losses at the start of the new week ahead of Bank of England’s policy decision on Thursday, with investors mulling whether a rate hike will be announced at the meeting.

Meanwhile, against a basket of six major peers, the US Dollar traded in proximity to a 2 1/2-week high on Monday, since accelerating inflation in the United States added to prospects of earlier interest rate hikes by the Federal Reserve ahead of the bank’s policy decision this week.

The index of core personal consumption expenditures in the US, which is the Federal Reserve’s preferred measure of inflation, rose 4.4% last month, while boosting expectations that a rate hike may occur by June 2022 and a stimulus tapering announcement may come at the bank’s November meeting.

The latest federal funds rate futures data indicated markets were pricing a 90% chance of a rate hike by mid-2022 and another rate increase by the end of 2022.

The US dollar looked “well-positioned to build on gains through a potentially decisive week of event risk,” according to an investor note by Westpac strategists, who forecast a “brisk” $15 billion per month tapering of bond purchases and a Non-Farm Payrolls report “at least as strong as consensus.”

According to Westpac, any drop in the DXY to the mid-93 level represents a buying opportunity.

As of 9:50 GMT on Monday GBP/USD was edging down 0.16% to trade at 1.3660, after earlier touching an intraday low of 1.3643. The latter has been the Forex pair’s weakest level since October 13th (1.3576). The major currency pair appreciated 1.57% in October, while marking its best monthly performance since May.

Bond Yield Spread

The spread between 2-year US and 2-year UK bond yields, which reflects the flow of funds in a short term, equaled -21.15 basis points (-0.2115%) as of 9:15 GMT on Monday, down from -20.1 basis points on October 29th.

Daily Pivot Levels (traditional method of calculation)

Central Pivot – 1.3718
R1 – 1.3768
R2 – 1.3854
R3 – 1.3904
R4 – 1.3954

S1 – 1.3632
S2 – 1.3582
S3 – 1.3496
S4 – 1.3411

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Forex Market: EUR/CHF daily trading forecastForex Market: EUR/CHF daily trading forecast Friday’s trade saw EUR/CHF within the range of 1.0661-1.0815. The daily high has also been the highest level since January 15th, when a high of 1.2019 was recorded. The pair closed at 1.0705, losing 0.82% on a daily basis, following three […]
  • Natural gas futures weekly recap, September 1 – September 5Natural gas futures weekly recap, September 1 – September 5 Natural gas fell for a fourth straight day on Friday to settle the week almost 7% lower after the EIA reported a larger-than-expected build in US inventories in the week ended August 29th and weather forecasting agencies predicted a broad […]
  • Forex Market: EUR/JPY daily forecastForex Market: EUR/JPY daily forecast During yesterday’s trading session EUR/JPY traded within the range of 139.47-140.28 and closed at 139.62.At 7:33 GMT today EUR/JPY was losing 0.01% for the day to trade at 139.73. The pair touched a daily low at 139.48 during the early […]
  • Forex Market: AUD/USD trading outlook for March 28thForex Market: AUD/USD trading outlook for March 28th Friday’s trade saw AUD/USD within the range of 0.7489-0.7538. The pair closed at 0.7508, edging down 0.29% on a daily basis. It has been the 10th drop in the past 21 trading days and also a third consecutive one. The daily high has been a […]
  • Forex Market: EUR/USD daily trading forecastForex Market: EUR/USD daily trading forecast Friday’s trade saw EUR/USD within the range of 1.1114-1.1231. The pair closed at 1.1195, losing 0.31% on a daily basis, or marking the first drop in the past three trading days. The daily low has been the lowest level since September 23rd, […]
  • Nintendo share price up, Super Mario goes mobileNintendo share price up, Super Mario goes mobile Nintendo Co announced on Tuesday it had teamed up with mobile game developer DeNA Co to bring its iconic characters like Super Mario, to the world of smartphones and tablets.The Japanese game developer, best known for its home and handheld […]