GBP/USD hammered down to over two-week low, below mid-1.3100s on Bailey's dovish remarks

avatar
· 阅读量 46



  • GBP/USD comes under intense selling pressure in reaction to Bailey’s dovish remarks.
  • Bailey hints at more aggressive rate cuts and weighs heavily on GBP amid a bullish USD.
  • Reduced bets for a 50 bps Fed rate cut in November and geopolitical risks benefit the buck.

The GBP/USD pair continues losing ground for the third straight day – also marking the fourth day of a negative move in the previous four – and plummets to over a two-week low during the first half of the European session on Thursday. Spot prices currently trade below mid-1.3100s, down nearly 1.0% for the day, and seem vulnerable to decline further in the wake of Bank of England (BoE) Governor Andrew Bailey's dovish remarks. 

In an interview with the Guardian newspaper published this Thursday, Bailey said that there was a chance that the BoE could become a bit more aggressive in cutting rates if there's further good news on inflation. The markets were quick to react and are now pricing in a 90% chance of a 25 basis points interest cut at the next BoE meeting in November. This, in turn, weighs heavily on the British Pound (GBP), which, along with sustained US Dollar (USD) buying, contributes to the GBP/USD pair's steep intraday fall. 

The incoming US data pointed to a still resilient labor market and forced investors to scale back their expectations for a more aggressive policy easing by the Federal Reserve (Fed). This, along with geopolitical risks stemming from the ongoing conflicts in the Middle East, assists the safe-haven USD to prolong this week's recovery from its lowest level since July 2023. The USD Index (DXY), which tracks the Greenback against a basket of currencies, climbs to a three-week top and exerts additional pressure on the GBP/USD pair. 




风险提示:以上内容仅代表作者或嘉宾的观点,不代表 FOLLOWME 的任何观点及立场,且不代表 FOLLOWME 同意其说法或描述,也不构成任何投资建议。对于访问者根据 FOLLOWME 社区提供的信息所做出的一切行为,除非另有明确的书面承诺文件,否则本社区不承担任何形式的责任。

FOLLOWME 交易社区网址: www.followme.ceo

喜欢的话,赞赏支持一下
avatar


回复 0
  • tradingContest
登录
使用 Google 账号登录
使用 Apple 账号登录
使用手机号登录
or
邮箱地址
密码
忘记密码?
没有账户? 注册