GBP/USD Surges on BoE and Fed’s Rate Speculations

The GBP/USD is trading at 1.3311 and higher by 0.12% on the day so far. The pair has recovered from a low of 1.3276 and has reached a high of 1.3352 so far.

DXY, an index that measures the US dollar vs a basket of currencies spiked around 40 points during his testimony to the Senate on Tuesday.

Powell said, “we are actually at our next meeting in a couple of weeks going to have a discussion about accelerating that taper by a few months”.

He also pledged to bury the term “transitory” and instead recommends Fed policymakers to consider explaining more clearly what the Fed thinks/means when it is talking about inflation.

However, the US dollar fell back to the start again due to a relatively strong Euro. Data from yesterday came in hot for both the German Unemployment Rate and Eurozone inflation.

The British pound holds near the 2021 low versus the greenback as doubts grew on whether the Bank of England will raise interest rates at a policy meeting this month. The BoE said in November it would probably have to raise rates from an all-time low of 0.1% “over the coming months”.