The great experiment | 21 12月 2021

21 12月 2021, GBP/USD

GBPUSD trading plan:

Bank of England to became the first G7 central bank into the great post-pandemic interest rate rise experiment. It will only take two more quarter point hikes next year to get back to where policy rates were before the pandemic and money markets are already priced for three. But at least four were priced a little over a month ago and the flattening of the money market and bond rate curves further suggest that dynamic is underway. Another harbinger of economic trouble to come is the flattening 2–10-year UK government bond yield curve. At just 24 basis points, that gap between short and long-term rates has more than halved since the Bank started talking tough in the autumn and is less than a quarter point from another worrying inversion seen just before the pandemic as formal Brexit neared.

Investment idea: range 1.3175 -1.3271.

David Johnson
Analyst of «FreshForex» company
您浏览器禁用cookie 文件. 在此情况下, 私人空间显示不正常. 如何启动cookie 文件的支持.
manager photo manager photo


Get bonus