The British pound trades quietly against the US dollar at the beginning of the Fed-Boe Monetary Week

News Fetcher3 minutes ago

0 0 4 minutes read

The pound is a large -scale side of about 1.3580 against the US dollar before federal monetary policy ads this week.
Investors expect that each of the central banks will maintain fixed interest rates.
Investors remain on his toes with the escalation of tensions between Israel and Iran.

the sterling (GBP) reaches approximately 1.3590 against the US dollar (USD) until Monday, and remains within the trading scope on Friday. The GBP/USD pair is expected to continue trading within a narrow range where investors have been marginalized before monetary policy ads before Federal Reserve (Fed) and England Bank (BOE), due on Wednesday and Thursday, respectively.

At the beginning of the week, US dollar index (DXY), which tracks the value of Greenback for six main currencies, up to nearly 98.00.

Investors will closely monitor interest rate guidelines from both central banks, while they are expected to leave those who have not changed their current levels.

Federal Reserve officials stated this interest Rates In the current range, 4.25 % -4.50 % should remain for a longer period so that they can clarity on how to impose new economic policies by the President (United States) Donald Trump on inflation and affects economic growth. Political makers have warned that Trump’s agenda could prove to be an inflationary of the economy.

In the declaration of the monetary policy of the Federal Reserve Mobilization, investors will pay close attention to the DOT plot, which shows the place where political makers see interest rates in the short and long term.

Daily Digest Market Movers: The British pound is still calm against its main peers

The pound is widely trading widely against its main peers on Monday, as investors are waiting for the interest rate of the Bank of England. The Central Bank of the United Kingdom (UK) is expected to leave fixed 4.25 % borrowing rates on Thursday, as officials led a “gradual and cautious” approach to cash cash, following the interest rate of 25 points (BPS) at the May Politics meeting.
Participants in the financial market doubt that the Bank of England will retain the direction of alleviating the “gradual and caution” policy as the latest employment data during the three -month period ending in April, showing cracks in the pace of job growth.
Business owners in the United Kingdom slowed the pace of their employment to compensate for the impact of the increase in their contribution to the social security system, which has become in effect in April. In the autumn statement in the United Kingdom, Treasury Adviser Rachel Reeves announced an increase in the contribution of employers to national insurance (NI) to 15 % of 13.8 %.
Before BOE’s monetary policy, investors will also focus on the UK consumer price index data (CPI) for May, which is scheduled to be released on Wednesday. The CPI report in the UK is expected to show that price pressures have grown at a moderate pace.
On the global front, it is possible that the escalating geopolitical tensions in the Middle East will limit the appetite of investors to the origins of risks, such as the pound sterling. Euronus reported that Israeli Defense Minister Israel Katz has threatened to accelerate the attacks on Iran if Iran continued to launch missiles in Israel. “Tehran will burn if it continues to launch attacks on Israel,” Katz said. Meanwhile, Iran threatened to strangle the Strait of Hormuz, the most important gate in the world to ship oil, according to Reuters.
During the European trading hours, a spokesman for the Israeli military forces stated that their forces “More than a third of the missile launchers were destroyed from Iran to the surface“

British pound price today

The table below shows the percentage of change in the British pound (GBP) against the main currencies listed today. The British pound was the strongest against the Swiss franc.

	US dollar	euro	GBP	JPY	CAD	Aud	Nzd	Chf
US dollar		-0.33 %	-0.14 %	-0.27 %	-11 %	-0.47 %	-0.39 %	-01 %
euro	0.33 %		0.08 %	0.03 %	0.22 %	-01 %	-06 %	0.32 %
GBP	0.14 %	-08 %		0.02 %	0.14 %	-0.09 %	-0.13 %	0.24 %
JPY	0.27 %	-0.03 %	-02 %		0.14 %	-51 %	-0.49 %	-16 %
CAD	0.11 %	-0.22 %	-0.14 %	-0.14 %		-0.28 %	-0.28 %	0.10 %
Aud	0.47 %	0.01 %	0.09 %	0.51 %	0.28 %		-05 %	0.33 %
Nzd	0.39 %	0.06 %	0.13 %	0.49 %	0.28 %	0.05 %		0.37 %
Chf	0.01 %	-0.32 %	-0.24 %	0.16 %	-0.10 %	-0.33 %	-37 %

The heat map shows the percentage changes in the main currencies against each other. The basic currency is chosen from the left column, while the quotation currency is chosen from the top row. For example, if you choose the British pound from the left column and move along the horizontal line to the US dollar, the percentage offered in the box will represent the GBP (Base)/USD (quotation).

Technical Analysis: The pound sterling is less than 1.3600

The pound is a large -scale side less than 1.3600 against the US dollar on Monday. The direction near the GBP/USD pair remains bullish, as the SIA moving average for 20 days (EMA) descends around 1.3500.

The relative strength index is struggling for 14 days (RSI) to decisively break higher than 60.00. A new rise momentum will appear if the relative strength index holds above this level.

In the upward direction, the height of January 13, 2022 will be at 1.3750 main obstacles for the husband. Looking down, the horizontal line drawn from the highest level on September 26 of 1.3434 will serve as a major support zone.

Economic indicator

The interest rate decision at Boy Bank

the England Bank (BOE) announces the interest rate decision at the end of its eight meetings scheduled per year. If the Bank of England is a snaging around the inflationary view of the economy and raising interest rates, it is usually difficult for the pound sterling (GBP). Likewise, if the Bank of England adopts Duofish’s view of the British economy and keeps interest rates unchanged, or cuts them, it is considered a declining GBP.