GBP/USD maintains its bid tone above 1.2200, upside potential seems limited – by hareshmenghani GBPUSD RiskAppetite Fed BOE Currencies
A positive risk tone undermines the safe-haven USD and offers some support to the pair.A dovish outcome from the BoE meeting could further contribute to capping the major.attracts some buying near a technically significant 200-day SMA support on Monday and stick to its gains through the first half of the European session. The pair is currently placed near the daily high, around the 1.2230 region and remains well supported by a modest US Dollar weakness.
A slight recovery in the global risk sentiment - as depicted by a generally positive tone around the equity markets - prompts fresh selling around the safe-haven buck. That said, a combination of factors might hold back traders from placing aggressive bearish bets around the USD and keep a lid on any meaningful upside for the GBP/USD pair, at least for the time being.
Despite the easing of strict COVID-19 curbs in China, a sharp rise in new infections could delay the full reopening of the economy. This, along with the protracted Russia-Ukraine war, might keep a lid on any optimistic move in the markets. Furthermore, a more hawkish commentary by the Federal Reserve last week supports prospects for the emergence of some USD dip-buying.
In fact, the US central bank indicated that it will continue to raise rates to crush inflation and projected at least an additional 75 bps increase in borrowing costs by the end of 2023. This, in turn, pushes the US Treasury bond yields higher and favours the USD bulls, warranting caution before positioning for any further appreciating move for the GBP/USD pair.meeting, with two MPC members voting to keep interest rates unchanged, could undermine the GBP amid looming recession risks.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
AUD/USD: Australian Dollar floats above 200-SMA on mixed China news, sluggish sentimentAUD/USD seesaws around the 0.6700 round figure as a short-term moving average defends the Australia Dollar buyers during early Monday morning in Europ
Read more »
USD/JPY struggles below 136.00 mark, flirts with the critical 200-day SMAThe USD/JPY pair struggles to capitalize on its modest intraday uptick and attracts some sellers near the 136.60 region on Monday. The pair retreats t
Read more »
Watch This Audi RS6's Speedometer Drop to Zero as It Eclipses 200 MPH on the AutobahnWatch this Audi RS6's speedometer drop to zero as it eclipses 200 mph on the Autobahn:
Read more »
Over 200 snow vehicles deployed to clear residential areasSalt spreaders have been working since Thursday to make sure the main roads are safe and passable.
Read more »
GBP/USD Price Analysis: 21DMA guards the downside at the start of the weekGBP/USD is consolidating the rebound below the 1.2200 threshold, as bulls trade with caution amid a downbeat market mood at the start of the week on M
Read more »
GBP/USD bulls are guarding 1.1950 and eye 1.22sGBP/USD is moving higher in the open, up some 0.2% having popped from a low of 1.2135 and reaching 1.2159 so far on the day. Markets are backing the g
Read more »