British pound crash. What will the week bring?

Over the past few weeks, the markets have focused on the Fed's monetary policy, the energy crisis in Europe and the progressive counteroffensive of the Ukrainian troops. However, investors from time to time surprised are an event that was difficult to predict. Examples of such events are the coronavirus pandemic, the outbreak of the war in Ukraine, or the plan to cut taxes and increase the deficit of the UK government. The announcement of fiscal expansion triggered an immediate reaction of the British pound, which on Monday morning was at the lowest level in over four decades against the US dollar. Bank of England, which last week decided to raise interest rates to 2,25%, is facing an extraordinary meeting and re-adjusting the monetary policy to the government plans.

The dollar is stronger than ever

Meanwhile, the USD remains strong due to last week's Fed assurances. Federal Reserve not only did it raise interest rates by 75 bp, but also announced much more decisive hikes in the future - even if it would mean a recession. The recent comments of Jerome Powell show that the Fed will closely monitor the condition of the US labor market, therefore the next week's NFP report may be the key publication for the dollar.

We invite you to a webinar with the Chief Economist XTB Przemysław Kwiecień, PhD, in which he will focus on the key topic of recent days - the collapse of the British pound!

In today's video:

• Pound crash, what about the dollar?
• What does the market sentiment look like?
• How long will stock prices decline?

WATCH ON-LINE

In addition, due to the very dynamic situation in the world, additional ones will be made available raports Video on the impact of war, pandemic and economic crisis on the global economy.

About the host

Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.

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