GBP / USD Price, Chart and Analysis
- The UK is on the verge of overestimating Omicron incentives.
- For the Bank of England to stand on Thursday, the Fed will issue further instructions.
British Prime Minister Boris Johnson Everyone in the UK over the age of 18 will be encouraged by Japan this week to announce the arrival of the ‘Omicron Storm’. The new emergency immunization program includes military assistance and aims to provide up to 1 million jabs per day to reach the third target for every eligible adult in the UK by the end of the year.
UK Health Minister Sajid Javid told the BBC earlier today “So what we learned last week about the new alternate omega is that it is spreading at an astonishing rate. The number of infections doubles every two or three days, there is a storm. Infection.The second thing we learned last week is that two doses of the vaccine are not enough, but three doses – high doses -. More than 40% of people over the age of 12+ have taken three doses so far.
While Omicron’s expansion poses a serious threat to the UK economy, macro data will be the driving force behind any sterling price action this week. Following the latest inflation and inflation data on Tuesday and Wednesday, the Bank of England will make its final decision on Thursday. During this meeting, the expected price increase of 15 basis points was fully sold out, but in the last two weeks, the expansion of the new CV-19 variance has seen these expectations erode with the market. Wait for the BoE to leave all policy settings until February.
One day before that decision, the Federal Reserve Bank announced its latest monetary policy decision. While there has been no change in the bank’s interest rate, the bond purchase program (QE) is expected to slow further, with the latest Fed dot plot expected to increase by at least two 0.25% next year. It could be three.
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The rope was under final pressure Months From both the strong US dollar and the weak British pound. From the June-June high of 1.4249, the cable is stuck in a well-defined low trend. GBP / USD is currently trading at around 1.3225 and has been trying to build a low for several months in recent months. This can be difficult when there are so many important macro events ahead this week. However, if the BoE decides to raise rates on Thursday, this sterling will move it to the short-term target zone 1.3350-1.3400.
GBP / USD Daily Chart December 13, 2021
Retail Merchant Data Show 72.03% of traders are net-long, while the ratio of traders from long to short is 2.58 to 1. Trades Net-Short is up 2.69 percent yesterday and 3.1 percent lower than last week. Compared to last week, it is up 30.22 percent.
We typically take a negative view of public sentiment, and the fact that traders are long indicates that the GBP / USD price may continue to fall. Position is longer than yesterday but shorter than last week. It gives us a combination of current emotions and recent changes a Additional mixed GBP / USD trading bias.