2023-08-03 • Updated
Today, the Bank of England has decided to raise interest rates to combat inflation. In its recent report dated the 3rd of August, 2023, the BOE confirmed that it had raised interest rates to 5.25%, expecting that the inflation rates would drop to 2%. Inflation remains a major concern, at 7.9% in June, four times the 2% target. However, the warnings that the Bank's rapid rate increases could trigger a recession have not moved a muscle, and the Trades Union Congress has called for borrowing costs to remain unchanged.
As I mentioned in my previous article, GBPJPY has given the initial reaction I was expecting to see. There has also been a minor break and retest on the lower timeframe leading to the swift breakdown of the bullish movement. I don’t expect the interest rates by the BOE to hold much sway over the technical analysis.
Analyst’s Expectations:
Direction: Bearish
Target: 174.671
Invalidation: 184.168
GBPAUD is still in the supply zone, though the initial rejection move has already been completed. This means we can expect the price action to drop further down, possibly till the marked support area is reached.
Analyst’s Expectations:
Direction: Bearish
Target: 1.87287
Invalidation: 1.94012
GBPNZD slowly created a channel inside the supply zone on the weekly timeframe. This means we should begin to see price glide down to test the trendline support before any possibility of a bullish scenario may present itself.
Analyst’s Expectations:
Direction: Bearish
Target: 2.05658
Invalidation: 2.09425
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
You can access more of such trade ideas and prompt market updates on the telegram channel.
During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...
Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
|
