Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
Cancel Confirm
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Confirm
Octa trading broker Sign up Log in
Octa trading broker
Open trading account
Trading news
Back
22 May 2024

GBP/USD exposed to downside after hesitant FOMC outlook, surprise UK election announcement

  • GBP/USD is easing back from Wednesday’s early gains after FOMC showing.
  • UK PM Sunak calls for general election July 4 in a bid to hold power.
  • Rate cuts in 2024 look less likely, investors bid up Greenback.

GBP/USD is pulling back from Wednesday’s early gains after the Federal Reserve’s (Fed) latest Meeting Minutes showed the Federal Open Market Committee (FOMC) remains deeply skeptical that inflation will ease to 2% quickly enough to spark rate cuts as soon as investors continue to hope for.

The FOMC have been knocked into a second-guessing stance after the first quarter’s inflation figures from the US broadly disappointed central planners. With US inflation proving stubborn, the Fed continues to debate the “restrictiveness” of current policy. The FOMC did not rule out a September rate cut outright, but rate-trim-hungry investors were hoping for a far more dovish showing from the FOMC’s Meeting Minutes.

Read more: Fed Minutes leave the door open to a probable rate cut in September

UK Prime Minister Rishi Sunak has called for a surprise general election for July 4 in a high-risk bid for the Tories to maintain a 14-year leadership streak. Initial polling shows PM Sunak’s Tory party trailing their opposition, the UK’s Labour Party, by 20 points.

Keir Starmer, the leader of the UK’s Labour Party is broadly expected to win the next election, and PM Sunak’s snap election call is reigniting speculation that members of the Tory Party are delivering no-confidence letters in the current PM’s leadership behind closed doors.

The UK’s Parliament will be dissolved on May 30 as the UK gears up for a short-notice election.

GBP/USD technical outlook

The Cable is grinding backwards on Wednesday, erasing the day’s early gains after the pair rose to an intraday high near 1.2760. GBP/USD is holding above the 1.2700 handle, but topside momentum has been halted and the GBP is close to flat on the day against the Greenback.

GBP/USD has been on an upside climb recently, closing in the green for all but one of the last nine consecutive trading days. However, the Cable remains down from March’s high bids near 1.2900 and bullish momentum remains limited north of the 200-day Exponential Moving Average (EMA) at 1.2543.

GBP/USD hourly chart

GBP/USD daily chart

GBP/USD

Overview
Today last price 1.2725
Today Daily Change 0.0016
Today Daily Change % 0.13
Today daily open 1.2709
 
Trends
Daily SMA20 1.2569
Daily SMA50 1.2584
Daily SMA100 1.2633
Daily SMA200 1.2541
 
Levels
Previous Daily High 1.2727
Previous Daily Low 1.2686
Previous Weekly High 1.2712
Previous Weekly Low 1.2509
Previous Monthly High 1.2709
Previous Monthly Low 1.23
Daily Fibonacci 38.2% 1.2711
Daily Fibonacci 61.8% 1.2702
Daily Pivot Point S1 1.2688
Daily Pivot Point S2 1.2667
Daily Pivot Point S3 1.2647
Daily Pivot Point R1 1.2729
Daily Pivot Point R2 1.2748
Daily Pivot Point R3 1.277

 

 

May 22, 2024

Dow Jones Industrial Average hunkers down ahead of Fed minutes

The Dow Jones Industrial Average (DJIA) slipped back slightly in the early US market session on Wednesday as investors continue to get pushed back on broad rate cut expectations.
Read more Previous
May 22, 2024

Gold sinks below $2,400 on FOMC’s hawkish minutes, traders booking profits

Gold plunged during the North American session on Wednesday, breaching below the $2,400 barrier, as traders seem to have booked profits ahead of the release of the last Federal Reserve (Fed) Meeting Minutes.
Read more Next