What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
How will Sunak's Election Affect the Pound?
Information is not investment advice
What happened?
On Monday, October 24, Rishi Sunak was elected the new UK Prime Minister. After the significant failure of the previous Prime Minister Liz Truss, whose plan for tax cut dumped the GBP and bond markets, a new PM has to find ways to return international investors' trust in the UK economy and slow down the inflation growth.
What to expect?
"Difficult decisions await us next", - Sunak said at the first press conference as Prime Minister of Great Britain.
In our view, Sunak will take tough steps against inflation in the first days of work. On November 3, the Bank of England will decide whether it will raise the key rate by 50- or 75-basis points. Despite its formal independence, the BOE might choose a more hawkish scenario for the key rate, strengthening the GBP against other currencies.
Technical analysis
EURGBP, H4 timeframe
EURGBP bounced off the descending trend line, highlighting the pair's weakness. We expect the price to keep declining toward 0.8625, 0.8580, and 0.8540.
Traders might consider selling the pair if the price touches the resistance trend line once again or after the price breaks below 0.8660.
Similar
Will Australia's "Rampant Inflation" Prevail in May?
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
How Will BoJ Meeting Affect the Yen
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus
Popular
What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
Will Australia's "Rampant Inflation" Prevail in May?
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
How Will BoJ Meeting Affect the Yen
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus
Choose your payment system
