Sterling Surges Beyond $1.31 in Powerful 7-Day Rally as Dollar Wobbles — TradingView News

2 Min Read


Key points:

  • Sterling rises to new 2024 high.
  • Markets anticipate Powell’s speech.
  • Euro, yen float sideways to start the day.

Illustration by TradingView

Fed boss Jay Powell’s Jackson Hole speech will be key to continuing the pound’s rise. Any surprises may quickly reshuffle forex board.

  • The GBPUSD pair extended its bull run early Friday, hitting a fresh 2024 high of $1.3130. The powerful rally is into its seventh straight day but big things are coming to test the sterling’s dominant surge. Jay Powell, Chair of the US Federal Reserve, will address interest rates and hopefully shed light on how many rate cuts investors can expect until the end of the year. His speech will take place Friday morning at the Jackson Hole forum.
  • With this in mind, expect increased volatility not only in the pound-dollar pair but across the forex space and global markets broadly. If Powell delivers what markets want to hear — maybe even a juicier 50bps cut at the September meeting, up from an expected 25bps cut — the US dollar may get caught in a tough spot. Lower rates are generally harmful to the local currency since they make it yield less on deposits.
  • In other trades in the currency corner, the euro fell on Thursday but was making efforts to reel out of the drop early Friday. The euro-dollar pair advanced to levels around $1.1130 in the first deals today. Still, traders kept a lid on their optimism as they awaited Powell’s market-moving speech. The USD/JPY was hugging the flatline for the week, floating near 146.00 to start today’s trading.



Source link

Share This Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *