The end of pandemic-era monetary stimulus | 28 July 2022

28 July 2022, GBP/USD

The end of pandemic-era monetary stimulus

GBPUSD trading plan:

The Federal Reserve raised its benchmark overnight interest rate by three-quarters of a percentage point in an effort to cool the most intense breakout of inflation since the 1980s, with "ongoing increases" in borrowing costs still ahead despite evidence of a slowing economy. The rate-setting Federal Open Market Committee lifted the policy rate to a range of between 2.25% and 2.50% in a unanimous vote. Coming on top of a 75-basis-point hike last month, and smaller moves in May and March, the Fed has raised its policy rate by a total of 225 basis points this year to a level now that most Fed officials feel has a neutral economic impact, effectively marking the end of pandemic-era monetary stimulus.

Investment idea: sell 1.2200 and take profit 1.2075.

David Johnson
Analyst of «FreshForex» company
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