- December 17, 2018
- Posted by: Trading
- Category: Alerts
Sterling, Brexit, Bank of England and the FOMC:
- Brexit gridlock continues to dominate Sterling.
- US interest rate hike expected but what next?
See how our Q4 Trading Forecasts for GBP can help you when trading.
Sterling Handcuffed Going into the Christmas Recess
Brexit continues to dominate UK asset markets and with nothing expected to happen this week, Sterling is likely to limp into the Christmas break around current levels. All this could change in an instant though if the UK government announces a more unified approach to Brexit or if the EU break the current impasse over the Irish border.
The Federal Reserve is fully expected to raise interest rates by 0.25% on Wednesday, the fourth such hike this year. Fed Chair Powell’s press conference 30 minutes later will be closely parsed for clues about further monetary policy tightening next year.
The Bank of England will leave all monetary policy settings unchanged with the central bank’s hands tied by the ongoing Brexit talks.
GBPUSD Daily Price Chart (June – December 17, 2018)
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