Pound Strengthens On Expectations For Smaller Fed Rate Hikes
November 24 2022 - 2:34AM
RTTF2
The pound climbed against its major counterparts in the European
session on Thursday, as the minutes from the Federal Reserve's
latest policy meeting suggested that an easing in the pace of
interest rate hikes would be appropriate soon.
European markets are higher on hopes of a moderation in the pace
of interest rate hikes by the U.S. Federal Reserve.
The minutes showed that a "substantial majority" of Fed
officials supported slowing down the pace of interest rate hikes at
upcoming meetings.
A slower pace of rate hikes would better allow the Fed to assess
progress toward its goals of maximum employment and price
stability, the minutes said.
Market participants are pricing in a 50 basis point rate hike at
the meeting in December.
The GBP/USD pair approached more than a 3-month high of 1.2132.
The pound is seen finding resistance around the 1.27 level.
The GBP/CHF pair climbed to a 3-week high of 1.1441. On the
upside, 1.22 is likely seen as its next resistance level.
The pound was up against the euro, at more than a 3-week high of
0.8576. The pound is likely to challenge resistance around the 0.84
level.
In contrast, the pound fell against the yen, hitting a 3-day low
of 167.15. Should the pound slides further, 165.00 is likely seen
as its next downside target level.
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