On 1st August 2024, the Bank of England (BOE) made a significant announcement regarding the monetary policy and Cut the Fed Rate. Following this decision, the governor of the Bank of England, Mark Carney, delivered a speech that further emphasized the bank’s dovish stance. This document explores how these announcements affected the GBPUSD pair on that day.
Today’s given signal : https://t.me/calendarsignal/14171
Federal Reserve’s Rate Cut
On 1st August 2024, the Fed announced a rate cut, reducing the benchmark federal funds rate by 0.25%. This move was aimed at supporting economic growth and combating inflationary pressures. The Fed’s decision to cut rates was seen as dovish, as it indicates a willingness to keep borrowing costs low for an extended period.
Bank of England’s Dovish Speech
On the same day, the Bank of England’s Governor Andrew Bailey delivered a speech that echoed the Fed’s dovish stance. Bailey emphasized the BoE’s commitment to supporting the UK’s economic recovery and expressed concerns about rising inflation. His dovish comments, which hinted at the possibility of further easing measures, added to the overall market sentiment and weighed on the GBPUSD pair.
Impact on GBPUSD Pair
The combination of the Fed’s rate cut and Bailey’s dovish speech had a significant impact on the GBPUSD pair. The GBP, being typically sensitive to changes in monetary policy, weakened against the dollar. The rate cut and Bailey’s comments were seen as indications that both central banks were prioritizing economic growth over controlling inflation, which weakened the appeal of the GBP.
The GBPUSD pair reacted immediately to these events, with the price falling sharply on the day. The decline reflected investor sentiment that the Fed and BoE were adopting a more accommodative stance, which outweighed any concerns about inflation. Investors moved capital from GBP-denominated assets to USD-denominated ones, which contributed to the depreciation of the GBP against the USD.
Previous released data results :
On last data (20-6-2024) we predict to SELL GBPUSD as for rate cut decision, GBPUSD price was fall.
Check the previous blog : https://blog.forextrade1.co/impact-on-gbpusd-ahead-of-boe-rate-cut-decision-today/
Check last given signal : https://t.me/calendarsignal/13156
Performance : https://t.me/calendarsignal/13191
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