Forex News May 05, 2022
Pound
Cable continues to fall, with the drop reaching 250 pips.
The pound has had a bad day.
What does 10% inflation and a recession in early 2023 sound like?
That’s the long and short of the Bank of England’s decision today, with interest rates rising to 2.50 percent by the middle of next year.
The pound’s 2% drop today will undoubtedly add to inflationary pressures, while oil prices’ 1.2 percent rise will not help. The weekly cable chart shows a near-total lack of support until the low of 1.2085 in May 2020.
The weekly RSI is now at 18.2, indicating the possibility of an oversold bounce, but this is a fundamentally driven move.
Labor
Cable continues to fall, with the drop reaching 250 pips.
The pound has had a bad day.
What does 10% inflation and a recession in early 2023 sound like?
That’s the long and short of the Bank of England’s decision today, with interest rates rising to 2.50 percent by the middle of next year.
The pound’s 2% drop today will undoubtedly add to inflationary pressures, while oil prices’ 1.2 percent rise will not help.
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