GBP/USD Creeps Upward for First Time in Three Weeks

After a rise on Wednesday, the GBP/USD currency pair fell below 1.0800 on Thursday. At the start of trading in Europe, the pair went above 1.1100.

Chart GBPUSD, D1, 2022.09.30 02:10 UTC, Pepperstone Markets Limited, MetaTrader 4, Real

The GBP/USD changed a lot because the Bank of England (BoE) bought and sold bonds on the gilt market. The BoE will temporarily buy long-term UK government bonds to bring order back to the market, but the MPC’s annual stock reduction goal of £80 billion will stay the same.

Even though it’s impossible to know how this will affect the value of the British pound in the long term, investors seem to have more faith in the BoE’s willingness to step in when needed.

Despite the market’s reaction, news sources said that the government had no plans to change its budget policy. If the fiscal policy goes against monetary policy, it won’t be good for the pound. Liz Truss, the British prime minister, said she wasn’t embarrassed by the budget proposal because “we’ve seen terrible markets around the world.”

The US will report its GDP for the second quarter later today. Since this is a change, the market may not react much. Futures for the US stock market are down 0.6% to 0.8%. If Wall Street’s main indices open deep in the red, it may be hard for GBP/USD to keep going up. Early in the day, US stock index futures were down more than 1%, but a recovery could bring risk flows back to markets.


If the price falls below 1.07, the downward trend could start up again, with 1.0550 or 1.04 as possible lows. Volatility will probably go up.

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