857 days ago • Posted by Paul de La Baume
GBP/USD continues to be pressured. #USD strong. #Fed #GBP #forex #forextrading
The Sterling is heavily challenged by a doomed macro picture, with deeply negative real yields, a large debt burden and a structural current-account deficit. On the other hand, the USD has continued to strengthen against major currencies on the back of a strong economy, and investors positioning into bullish USD trades on the back of expectation of the Fed reducing its asset purchasing program and eventually beginning raising rates. The Omicron variant has also added pressure particularly to the UK and likely contributed to weakening the near-term GBP outlook. With the current GBP/USD at 1.3225, on a technical level, support may come at 1.32 and if breached there is the psychological level of 1.30. The USD should be particularly volatile this week with the US Fed on Wednesday.
