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GBP/JPY 204.851
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According to the AXIOS website: The White House is taking steps to block a bill that would restrict the export of artificial intelligence chips.According to the U.S. Commodity Futures Trading Commission (CFTC), as of the week ending September 30, speculative net long positions in COMEX silver futures decreased by 2,815 contracts to 37,250 contracts.According to the U.S. Commodity Futures Trading Commission (CFTC), as of the week ending September 30, speculative net long positions in COMEX gold futures decreased by 9,305 contracts to 149,311 contracts.A court ruling shows that a U.S. appeals court has suspended an order restricting federal immigration officials enforcement tactics during protests in Chicago.On November 20th, gold prices gave back some of their gains after the release of the latest Federal Reserve meeting minutes, with market participants focusing on upcoming US economic data for new clues about the path of US interest rates. The minutes of the October Fed policy meeting showed that despite policymakers warning that lowering borrowing costs could impact inflation control after four and a half years of growth above the 2% target, the divided Fed decided to cut interest rates last month. Fed Chairman Powell stated in unusually blunt terms at the post-meeting press conference that a rate cut at the December meeting was "not a done deal." Marex analyst Edward Meir pointed out, "The minutes are a done deal; whats more important is observing the developments in December. The Fed needs more data to make its decisions. Scattered data releases will be the focus of market attention." The CME FedWatch Tool shows that traders currently expect only a 30% probability of a rate cut in December.

GBP/USD to Test 1.2260; Downside Remains Favored Due to Rising US CPI; UK GDP Watched

Daniel Rogers

May 12, 2022 10:13

The GBP/USD pair has broken to the negative from its week-long consolidation between 1.2260 and 1.2400. The asset may test the lower range of consolidation to confirm the bears' strength, but the downside remains intact as rising US inflation data has increased the likelihood of a massive rate hike by the Federal Reserve (Fed) in June.

 

Wednesday's 8.3 percent reading for the US Consumer Price Index (CPI) surpassed the 8.1 percent forecast by theștiindștiind. Market analysts anticipated that the Fed's June monetary policy would include a 50 basis point (bps) interest rate hike in response to the US CPI reading of 8.1%. Now, a higher-than-anticipated US inflation rate has increased the likelihood of a 75 basis point rate hike. This has shook the foreign exchange market, and investors are selling risky assets like there is no tomorrow.

 

In the meantime, the US dollar index (DXY) is trying to maintain its position above 104.00, although the upside remains intact. Regarding the British pound, investors anticipate the announcement of Gross Domestic Product (GDP) figures. The quarterly GDP estimate for the United Kingdom is predicted to be 1 percent, compared to the previous estimate of 1.3%, while the annual estimate is projected to be 9 percent, compared to the previous estimate of 6.6%. A higher-than-anticipated UK GDP may protect the pound from additional losses, whilst a weaker-than-anticipated figure would accelerate the asset's decline.

GBP/USD

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