Forex Analysis: May 20, 2021 - Fed's Tapering Plan Weakens Poundsterling

The daily forex analysis of May 20, 2021 will discuss the signal that the Fed will start tapering its monetary policy if economic growth occurs quickly and evenly, which has weakened the Pound sterling currency. Although the UK economic data was released positively, it could not maintain the strengthening of the Pound Sterling against the US Dollar. The data is labor data and the inflation rate released is good compared to the forecast and the previous period. The weakening of the Pound Sterling against the US Dollar occurred due to the strengthening of the American currency. Today's market movement GBPUSD is predicted to continue to weaken in Pundsterling against the US Dollar. In the recent movement, the strengthening of the Pound Sterling has reached its Weekly high. This weakening is not only due to the strengthening of the US Dollar, but also due to the profit-taking action of market participants. The greenback is starting to bounce back from its slump against several other major currencies. The strengthening of the US dollar occurred after the results of the Fed meeting which planned to tape its monetary policy. In addition to the plan, the Fed also touched on the inflation rate, which according to their view of the long-term forecast for the inflation rate is still considered to be at a stable and normal achievement level of 2%. The Fed's tapering plan also boosted the yield value of US government bonds. The strengthening or weakening of the US Dollar is greatly influenced by the value of long-term bond yields. The increase in bond yields has touched the highest level in a week.

Forex Daily Analysis Predictions

Today's FOREX prediction on the GBPUSD pair is expected to weaken/fall and the recommended OP (Open Position) is SELL at the level of 1.40950. With a Target Profit (TP) of 10 - 20 points and a Stop loss (SL) of 5 - 10 points. This the daily forex analysis of May 20, 2021 which discusses the weakening of the British Pound Sterling against the US Dollar. Keep Money Management and Risk Management first in your trading. Visit GIC Indonesia to get information about the world of trading. You can also join us in the GIC Trade Telegram Community and GIC Trade Telegram Channel. Don't forget to check out the GIC Indonesia Youtube account which is full of a lot of information, and follow our Instagram account to get information about various interesting webinars that you can participate in.