GBP/USD is struggling to breach 1.3050 as investors await monetary policies from the Fed and BOE.
The GBP/USD pair has opened on a cautiously positive note on Monday as the week is going to bring a power-pack action for the cable. The announcement of monetary policy from the Federal Reserve (Fed) will keep the greenback sellers on their toes while investors eye one more interest rate hike from the Bank of England (BOE) after two hikes of 25 basis points (bps) each in December and February. It is worth noting that the BOE was the first central bank that hiked its interest rates post the Covid-19 pandemic.
The think tank of the BOE has forecasted consumer price inflation would peak at about 7.25% in April, when household energy tariffs are due to rise by more than half in the pre-Ukraine crisis period, as per Reuters.
Post Russia’s invasion of Ukraine things have changed dramatically as the natural gas and oil prices have skyrocketed and the extent of inflation in the pound area is likely to move beyond the BOE’S Feb meet forecasts. This has raised the odds of one more interest rate hike from the BOE.
Meanwhile, the US dollar index (DXY) is hovering around 99.00 due to the absence of materialistic headlines from the Russia-Ukraine war. The monetary policy from the Fed is due on Wednesday and investors are betting on a beyond imagination outcome this time.
AUD/USD sold off at 0.7300, as risk sentiment turns sour.AUD/USD is extending losses to test 0.7250 after facing rejection at 0.7300. The risk sentiment has turned sour on falling Chinese stocks due to the coronavirus resurgence in the country. Concerns over the Russia-Ukraine war loom while traders turn cautious ahead of the Fed rate hike.
AUD/USD News
Gold drops half a percent to $1,970 on cautious optimism over Ukraine crisis.Gold extends Friday’s downbeat performance as sellers attack $1,970 during the initial hours of Monday’s Asian session. The yellow metal’s recent losses could be linked to the increased hopes of a Ukraine-Russia ceasefire, as well as easing differences between the US and China.
Gold News
EUR/USD: Bears retake control below 1.0980 resistance confluence.EUR/USD reverses the early Asian session gains while taking offers around 1.0915 by the press time on Monday. The major currency pair remains below a convergence of the nearby descending trend line and 50-SMA amid bearish MACD signals.
Free Forex Signals 