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Why the correction after the FOMC meeting? The Fed kept rates steady but signaled fewer rate cuts in 2024 than expected. This “dot plot” surprise, combined with a data-dependent approach, led markets to adjust positions—USD strengthened, equities pulled back, and yields rose as investors priced in a more persistent tightening cycle. Understanding these nuances is key for navigating post-Fed volatility.
– Tomasz Wyka, FXStreet

After the recent FOMC meeting, markets quickly corrected because while interest rates were held steady as expected, Chair Powell’s comments signaled a more cautious, data-dependent approach with fewer rate hikes likely ahead. This shift eased fears of prolonged tightening and high rates, prompting a sell-off in the dollar and a rally in risk assets. Understanding this nuance is key for navigating the current landscape.

Why the correction after the latest FOMC? Markets had heavily priced in further aggressive rate hikes and hawkish Fed messaging. With the Fed holding rates steady and signaling a more cautious, data-dependent approach, USD longs unwound, sending the dollar lower and prompting a sharp FX market adjustment. (Credit: FXStreet)

GBP/USD faced a turbulent week as economic concerns, mixed central bank signals, and fragile support levels fueled volatility. BoE’s cautious stance contrasts with the Fed’s data-driven outlook, while weak UK data intensifies recession fears. Key support levels remain vulnerable amid global risk uncertainty. Stay tuned for next week’s developments.
Source: Warren Venketas, InsuranceNewsNet

GBP/USD slips below 1.3100 to 1.3097 after UK fiscal concerns unsettle sterling post-market close. Persistent deficits and uncertain budget plans weigh on the pound amid a stronger dollar. Eyes now turn to upcoming UK economic data and Bank of England signals. #GBPUSD #Forex #BoE

The British Pound slid sharply against the US Dollar, hitting 1.3097 as fresh UK fiscal data revealed widening budget gaps. The unexpected deterioration in public finances has intensified selling pressure on GBP/USD, prompting traders to reassess near-term prospects amid rising government borrowing and economic uncertainty. Market volatility may persist as investors weigh BoE’s policy response and broader macro risks.

GBP/USD slumps to 1.3097 as UK fiscal gaps raise concerns post-market close. Investor fears over rising borrowing needs and spending cuts weigh on Sterling, reversing recent gains amid BoE policy uncertainty and US dollar strength. Watch key support at 1.3050.

GBP/USD slipped to 1.3097 after UK markets closed, as concerns over the widening fiscal gap and unclear government plans weighed on sterling. Combined with Fed tightening and political uncertainty, the pound faces continued pressure amid rising volatility. Traders remain cautious on the currency’s near-term outlook.

GBP/USD dipped to 1.3097 as UK fiscal data revealed widening budget gaps post-market close, sparking concerns over public debt sustainability. Combined with a stronger US dollar and rising gilt yields, Sterling came under renewed pressure. Market focus now on UK policy response amid fiscal challenges.

GBP/USD dips to 1.3097 as widening UK fiscal gaps weigh on Sterling after market close. Increased public borrowing and rising debt concerns pressure the Pound, prompting cautious sentiment amid limited Bank of England policy flexibility. Key technical support near 1.3090; resistance holds at 1.3150-1.3200.