Weekly Outlook: GBP/USD

In the last five days of trading, the GBP/USD had another week of chaotic results, and it's likely that the currency pair hasn't seen the end of chaotic results yet.

The GBP/USD hit a high of almost 1.14950 on October 4 and 5. Some traders might think this has a lot to do with the "turnaround" of the Conservative government under Liz Truss, but they might be wrong. When the proposed tax plan of the U.K. government got a lot of bad press, the government pretty much gave up on it. Prime Minister Liz Truss changed her mind about what she said she believed in just a few days. Many financial institutions were not happy about this.

The GBP/USD exchange rate will be around 1.10900 when the week starts. Before last week's weekend, the GBP/USD was almost always trading calmly near the 1.12100 ratio. The markets turned again when the U.S. jobs report came out and was better than expected.

The situation is a mess because of bad leadership and unclear interest rates.

Early last week, not only did the U.K. government change its stated economic policy, but financial houses also started to think that the U.S. Federal Reserve would start to talk less about interest rates. The GBP/USD went up because of this. At the beginning of last week, stock market indices around the world went up, and there were some signs of hope. But comments from U.S. Federal Reserve officials at the end of the week and better-than-expected job data made the USD stronger on Friday.

The idea that inflation will suddenly drop a lot was "hurt" by the fact that the price of Crude Oil went up last week and is now trading for over $90.00 USD again.

People are getting used to the idea that the U.S. Federal Reserve will raise interest rates by 0.75 percent more in November.

Still a problem is inflation, and the GBP/USD exchange rate is hurt by the rise in crude oil prices.

At this point in the article, technical traders may want to scream, but there is one more big problem: inflation. The effects of inflation on the economies of the U.K. and the rest of the world won't go away quickly.

Since almost 8 days ago, the price of crude oil has been going up. When prices go up, interest rates go up. At the beginning of last week, the GBP/USD did reach levels seen on September 21, but there was a lot of selling because fundamentals were making financial houses nervous.

People's feelings about trading look like they will be more unstable in the coming week. Before the weekend, the GBP/USD rates only went down.

Comments

Traders should approach their activity as a business.

Traders need the same self-control as any other successful entrepreneur. The very first thing you need to do is create a trading plan on paper. You should keep your own records so that you may evaluate your broker's statements independently. A straightforward Excel tally sheet detailing daily, weekly, and monthly totals would do the trick. Include gross profit/loss, a number of trades, commission expenses, ECN fees, other costs, net profit/loss, equity (verify that it matches brokerage reports), and any pertinent data. Use this data to your advantage and become a better trader. Look for trends and the connection between revenue and expenditures. Included in your trading plan should be a breakdown of the many trades you intend to make during the day or week. Traders that are likely to succeed do not just look at their charts and make a move. Before moving forward with an attack, they considered every possible outcome and made preparations accordingly. The first and most crucial step

The Dollar Rises to a New 5-Week High Ahead of Jackson Hole on the Fed's Hawkish Tack

After another Federal Reserve member signaled the probability of sustained aggressive monetary tightening on Monday, the U.S. dollar index jumped to a new five-week high before the Fed's critical Jackson Hole symposium this week. After Russia said that it might cut off European gas supplies through the Nord Stream 1 pipeline for three days at the end of this month, worsening the region's energy crisis, the euro dropped to its lowest level in five weeks. The Chinese central bank slashed key lending rates, the latest in a series of monetary easing measures meant to shore up an economy suffering from COVID-19 crackdowns and a property crisis, which caused the yuan to fall to its lowest level in over two years. Last up 0.074% at 108.23, the U.S. dollar index rose to 108.26 for the first time since July 15 versus a basket of six rival currencies that includes the euro. This comes after a week in which the market rose 2.33 percent, its largest weekly rise since April 2020 and against

A Bitcoin charity event has been announced by Hal Finney's wife.

She stated that the purpose of the event is to raise money in order to provide assistance to people who have been affected by ALS. Fran Finney, the wife of the pioneer in the field of cryptography Hal Finney, has announced a charitable event that will benefit patients suffering from amyotrophic lateral sclerosis (ALS). Finney, who was discussing the event on Twitter, urged users of Bitcoin to participate in a half marathon and share their experiences on social media between January 1 and January 10, 2023 in order to contribute to the fundraising effort to combat the disease. Fran Finney, using her husband Hal Finney's official Twitter account, was the one who made the announcement. She had previously reactivated the account in order to save it from being deleted during a purge that Twitter performs on inactive accounts. The event, which is being held in conjunction with the Golden West Chapter of the ALS Association, was given the moniker "Running Bitcoin" in honor of the

EconomyDiary

Search This Blog