- The pound clings to gains across the board ahead of the FOMC statement.
- The US dollar continues to move sideways, DXY flat around 90.50.
The GBP/USD it peaked after the start of the American session at 1.4132 and quickly fell to the 1.4120 / 1.4100 range. It is moving sideways in range ahead of the Fed’s decision.
GBP holds earnings before the FOMC
At 18:00 GMT, the US central bank will announce its decision on monetary policy. No changes are expected. Market participants will be interested in the economic projection of the FOMC staff and in the mentions or signals about the reduction of asset purchases.
The outcome of the FOMC meeting is likely to have a major impact on markets, including the dollar and the pound. As traders await the Fed and Powell press conference, Wall Street stock prices and metals are moving sideways (18:30 GMT).
Among currencies, the pound is among the best performers so far on Wednesday. It gained momentum after UK inflation data showing higher than expected figures. “The BOE (Bank of England) has long said that a temporary spike in inflation would come this year and here we are. While the BOE’s tightening expectations have recently rebounded as the recovery picks up, today’s data did little to change the rate outlook. Sterling’s bearish run still shows that the first rate hike is mostly discounted mid-2022 and fully discounted for the third quarter of 2022, while yields change little to date. ” Brown Brothers Harriman analysts explained.
Technical levels
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