Markets:
WTI crude oil down 53-cents to $70.50US 10-year yields up 1.6 bps to 4.44%Gold down $8 to $2856S&P 500 up 0.4%JPY leads, GBP lagsThe pound was in focus today as the BOE cut rates (as expected) and lowered growth forecasts. That led the market to price in more rate cuts, including one in May rather than June. In turn, the pound initially fell to 1.2360 from 1.2430 in a swift move. But it stabilized there and then slowly climbed all the way back and more.
Part of the rebound was some broader US dollar selling and we may also have seen around of GBP short covering. When you zoom out, there is also the possibility of a double bottom on the cable chart that has some traders wading in, particularly after Trump said the UK wouldn't be targeted with tariffs.
The overall mood was a continuation of the late-Monday move as the market firms up its belief that Trump won't prioritize tariffs. At the same time, Trump reportedly laid out some aggressive tax cut priorities with little indications on how they might be paid for. The House is working quickly on a reconciliation bill that could offer some hints soon, including how tariffs could be used to pay for the tax cut.
The yen continued to climb as USD/JPY fell to the lowest since Dec 10 in the third day of strong selling. The latest catalyst was a BOJ member talking about a faster pace of rate hikes. In contrast, the Swiss franc fell as it becomes the preferred funder.
All this is wrapped around Friday's non-farm payrolls report. See: January non-farm payrolls preview by the numbers: Positive signs abound
This article was written by Adam Button at www.forexlive.com.Hence then, the article about forexlive americas fx news wrap pound bounces back after rate cut was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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