GBPUSD is moving in the Box Pattern and the Market has rebounded from the horizontal support area of the Pattern.
Where Is GBPUSD Today
The GBPUSD charts are quite unstable today as a result of the recent Jobless Claims report from the US which is near its 8-month high. We also got a speech from US president Biden and a statement from the government of the UK.
GBPUSD is moving in the Rising wedge Pattern and the Market has reached the higher low area of the Rising wedge Pattern.
As a result of these releases, the GBPUSD pair faced a high instability in its value and is now teasing around the 1.21 region. We may continue to see this pair be volatile throughout the day.
President Biden Speech
The president of the United States Joe Biden recently held a speech about the growing inflation crisis in the country following the recent monetary policy update. He reveals, “The bill finally delivers on a promise that Washington has made for decades to the American people. We are giving Medicare — we’re giving Medicare the power to negotiate for lower prescription drug prices, which means seniors and consumers will pay less for their prescription drugs.
GBPUSD is moving in an Ascending channel and the Market has fallen from the higher high area of the channel.
Medicare will save, in the process, about $290 billion. And, in addition, it also changes the circumstances for people on Medicare by putting a cap of a maximum of $2,000 a year. They have to pay no more than $2,000 a year, no matter how many prescriptions they have, for all their prescription drugs –which is especially important for people with cancer and long-term diseases. It’s a Godsend. It’ll literally be a Godsend for many families. Second, the bill locks in place lower healthcare premiums for the next three years for millions of families that get coverage under the Affordable Care Act. That will mean an average savings of $800 a year for 13 million people.”
He further states, “This investment in environmental justice is real. It also provides tax credits that will create thousands of good-paying jobs — manufacturing jobs on clean energy construction projects, solar projects, wind projects, clean hydrogen projects, carbon capture projects, and more — by giving tax credits for those who build these projects here in America. Now, let me be clear: This bill would be the most significant legislation in history to tackle the climate crisis and improve our energy security right away. And it’ll give us a tool to meet the climate goals that are set — that we’ve agreed to — by cutting emissions and accelerating clean energy. A huge step forward. With this legislation, we’re facing up to some of our biggest problems, and we’re taking a giant step forward as a nation. That didn’t just happen on this inf- — on this inflation reduction bill. It also happened yesterday when the Senate made the bipartisan decision as a nation to invest in America’s manufacturing technology of semiconductors and additional funding for basic research and development in the cutting-edge industries of the 21st century.”
US Initial Jobless Claims Report
Although the Initial Jobless Claims report dropped slightly from the previous 261K to now being at 256K, it is still near its 8-month high which reveals that the recent monetary policy has yet to impact the job market in the US. The four-week average for claims, which smooths out some of the week-to-week volatility, rose by 6,250 from the previous week to 249,500. That number is also at its highest level since November of last year. For the week ending July 16, there were 1,359,000 Americans receiving unemployment benefits, a decrease of 25,000 from the previous week. For months, that number has been close to 50-year lows. For the fourth consecutive month, the unemployment rate stayed at 3.6 percent, matching a low that had not been seen in nearly 50 years.
Analysts at Al Jazeera also reveal, “There are other indicators pointing to a persistent slowdown in the US economy. On Thursday, the Department of Commerce said that the US economy shrank 0.9 percent in the second quarter, the second-straight quarterly contraction. Two consecutive contractions in the gross domestic product (GDP) have traditionally signaled that a recession is on the horizon. On Thursday, US President Joe Biden shrugged off recession worries as he delivered brief remarks on the Inflation Reduction Act of 2022. The Inflation Reduction Act is a newly announced Democratic budget deal in Congress. Democrats say the bill will bring in $739bn in revenue and will invest $433bn in spending. Despite Biden’s rosy outlook, consumer prices continued to soar, up 9.1 percent in June compared with a year earlier, the biggest yearly increase in four decades. On Wednesday, the Federal Reserve raised its interest rates by 75 basis points. Higher mortgage rates have sent home sales tumbling after a boom during the coronavirus pandemic caused prices to reach record levels. Higher rates have also made the process of buying a new car more difficult and pushed credit card rates up.”
Ukrainians in the UK
As a result of the new scheme in the UK that gives out housing to Ukrainian refugees, over 100,000 Ukrainians have now entered the UK with a roof over their heads. Even though this number doesn’t seem like a lot compared to the millions seeking refuge in the country, it is certainly more than what Canada is doing at the moment. Canada is just speaking good and in favor of Ukraine but they have yet to actually do something to help them out, unlike the UK.
GBPUSD is moving in the Descending channel and the Market has reached the Lower high are a of the channel
The government of the UK reveals, “The Ukraine visa process is now fully digital, enabling applicants to apply online, submit their biometrics, including uploading their photo, through an app and evidence their rights to benefits and services, including Universal Credit, in the UK digitally. As a result of changes, including simplifying the application form and boosting staff numbers – at its peak, around 500 people were processing visas – with the government processing applications as quickly as possible, aiming for within 48 hours where possible. From day one, Ukrainians have the right to work and to access benefits and public services, including education and healthcare, on the same-footing as UK nationals. This will continue to be the case for those who wish to remain in the UK.”