GBP/USD steady as Fed cut rates, traders await Powell’s guidance
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GBP/USD holds at 1.2963 after Fed’s unanimous 25 bps rate cut. Fed acknowledges solid growth and easing labor conditions; inflation remains “somewhat elevated.” Powell’s upcoming remarks could signal Fed’s stance on future easing amid balanced risks. The GBP/USD barely moved after the Federal Reserve (Fed) cut rates by 25 basis points (bps) to the 4.50%—4.75% range. At the time of writing, the pair is at 1.2963, up 0.64%, as traders brace for Fed Chairman Jerome Powell’s press conference. Fed trims rates to 4.50%-4.75% range, highlights economic resilience and cautious inflation progress The statement mentions that Fed officials continued to see the economy expand solidly, although labor market conditions had eased. Regarding inflation, they noted that it “has made progress toward the Committee’s 2 percent objective but remains somewhat elevated.” Fed policymakers added that the risks of achieving its dual mandate “are roughly in balance,” adding that the economic outlook is uncertain. They will remain attentive to the risks of both sides of the dual mandate. Regarding the balance sheet, they would continue to reduce its holdings of Treasury securities, agency debt and agency mortgage‑backed securities. When making future decisions, the FOMC will consider incoming data, the evolving outlook, and the balance of risks. It is worth noting that the decision was unanimous, as Governor Michelle Bowman supported the rate cut. Next would be the Fed Chair Jerome Powell’s press conference at 14:00 ET. GBPUSD Price Chart – Daily The pair barely moved, though it remained below the confluence of the 20- and 100-day Simple Moving Averages (SMAs) at 1.2982-87. Powell’s hawkish message could push the GBP/USD lower, first to 1.2950, ahead of the 1.2900 figure. On the other hand, the GBP/USD could test the daily high at 1.3009. British Pound PRICE Today The table below shows the percentage change of British…
Filed under: News - @ November 7, 2024 7:24 pm