02 October 2024, GBP/USD
GBPUSD:
The GBP/USD pair remains weak after losses recorded in the previous session, trading near 1.3280 during Asian hours on Wednesday. The decline could be attributed to risk aversion due to rising geopolitical tensions in the Middle East, which is undermining the risk-sensitive Pound Sterling (GBP) and the GBP/USD pair.
Iran launched more than 200 ballistic missiles at Israel on Tuesday, shortly after the US warned a strike was imminent. The Israel Defense Forces said several missiles were intercepted and one person was killed in the West Bank, according to Bloomberg.
Israeli Prime Minister Benjamin Netanyahu vowed to retaliate against Iran after Tuesday's missile attack. In response, Tehran warned that any retaliatory strike would cause “immense destruction”, raising fears of the possibility of a wider conflict.
The US Dollar (USD) is receiving support from the latest speech from Federal Reserve (Fed) Chairman Jerome Powell. Powell stated that the central bank will cut interest rates gradually over time. Fed Chairman Powell added that the recent half-point interest rate cut should not be seen as a sign of similarly aggressive action in the future, noting that upcoming rate changes are likely to be more modest.
On Tuesday, Bank of England (BoE) Governor Megan Green warned that a recovery in United Kingdom (UK) consumption could trigger a new wave of inflation. However, Green noted that further interest rate cuts are likely as prices are “moving in the right direction,” Bloomberg reported.
Trading recommendation: Watch the level of 1.3300, if it is fixed above consider Buy positions, if it rebounds consider Sell positions.
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