U.K. pound rallies above $1.22 for first time since summer as market responds to less hawkish Powell

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Analysts say a speech from a less-hawkish Fed chair Jerome Powell has allowed sterling “a breather”, allowing it to surpass the $1.22 mark on Thursday...

The pound rallied above $1.22 for the first time since August on Thursday, after a hint by the Federal Reserve that it may be drawing its rate hiking season to a close soon.

Sterling GBPUSD jumped 1.2% to a high of $1.2234 against the greenback, its loftiest since Aug. 1 when it reached $1.2251. The pound got an extra lift after a key U.S. inflation gauge showed prices are cooling. He indicated that the Fed could raise interest rates by half a percentage point, bringing its benchmark rate to 4.25%-4.5% range, but balanced that with some hawkish points.

Chris Turner, global head of markets for UK & CEE at ING, theorized that the U.K. pound could reach $1.23 due to the dollar being “seasonally weak” in December, or fall back down to $1.15 by the new year. Echoing that view, Dean Turner, chief eurozone and U.K. economist at UBS Global Wealth Management, said investors are “convinced” that U.K. finances are in a more stable plane following the Autumn statement from Hunt earlier this month.

 

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By now it's become clear that it's the US Fed's Powell who caused the crisis of British Pound, not UK's Liz Truss and her Trussonomics!! How farcical the parliament MPs are to blame Trussonomics!! Ridiculous!!

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