Boom!! Another profit with Krish’s setup, done with 50 pips running profit.Easy money, bruhhh, HIT TP (Take Profit).
As usual, don’t be greedy, you can take your earnings. Nothing is impossible when you’re with Krish, profit is guaranteed.
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Gold (XAUUSD)
Sell Entry: 2654.500
TP1: 2652
TP2: 2649
TP3: 2646
TP4: 2643
TP5: 2640
TP6: 2635
Sl: 2665
Powell's rate cut signal lifts the British pound to a 17-month high
The British pound (GBP) surged by 0.92% and closed at a 17-month high against the U.S. dollar (USD) on Friday. The greenback and U.S. Treasury yields dropped sharply after Jerome Powell, the Federal Reserve (Fed) Chair, essentially confirmed that the U.S. central bank would cut interest rates in September.
Possible effects for traders
Specifically, Powell said that ‘the time has come for policy to adjust’, arguing that inflation was nearing the Fed's 2% target. The market has been expecting a September rate cut since the end of July and has essentially priced it in by pushing the U.S. Dollar Index (DXY) to an eight-month low. Still, Powell's comments managed to produce an additional bearish impact on the U.S. dollar and Treasury yields. ‘FX is a relative game, so the expectation for the Fed to join the other major banks soon in cutting rates is driving the dollar lower’, said Uto Shinohara, managing director and senior investment strategist at Mesirow in Chicago. The market probably hopes that a 50-basis-point rate cut may be delivered at some point, especially if the U.S. labour market continues to weaken.
Meanwhile, the bullish move in GBPUSD was additionally supported by positive signals in the U.K. economy. According to the GfK survey released on Friday, British consumer confidence remained at an almost three-year high in August, while enthusiasm for major purchases rose to its highest level since January 2022. Currently, traders don't expect the Bank of England (BOE) to ease its monetary policy in September. Instead, they price in a near 100% probability of a 25-bps rate cut in November.
GBPUSD was declining slightly during the Asian and early European trading sessions. Today, the volatility in all GBP pairs will likely be lower than usual as all U.K. exchanges and banks will be closed due to the Summer Bank Holiday. Still, the release of the U.S. Durable Good Orders report at 12:30 p.m. UTC may produce some noticeable moves in GBPUSD. If figures are stronger than expected, the pair may correct downwards, but probably not below 1.31800. Conversely, lower-than-expected results will keep GBPUSD near its recent highs, but a further rise is unlikely.
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