Yesterday we learned the Fed’s decision on interest rates in the US. The market was divided on the size of the cut – those who expected 50bp were right. The dollar initially lost, but after the Powell conference, the dollar regained losses for a while. Powell emphasized that the US economy remains robust and that the FOMC is in no rush to continue loosening monetary policy despite the aggressive cut today, underscoring that 50bps rate reductions should not be considered a “new pace”.
Today (19.09)we will learn the BoE’s stance on monetary policy in the UK. The market expects no change and assumes that interest rates will remain unchanged and remain at 5%.
Tomorrow, the BoJ will make monetary decisions. Here, too, the market expects no change.
If any bank makes a decision that deviates from expectations, we can expect increased volatility on GBJPY
GBPJPY technical analysis
Price is moving in a consolidation in a shape of a bearish flag. Possible move to the resistance of the formation. On the way to the resistance ( now 195.80) there is a supply zone which can stop the price rally. MACD supports bullish scenario.
