- GBP/USD sank to new multi-year lows around 1.1234 in reaction to the Fed’s 75 basis point rate hike.
- According to the SEP, the US Federal Reserve is likely to raise rates by an additional 125 basis points.
- The SEP reported that growth could decline to 0.2%, while inflation is expected to end at around 4.5-5.4%.
The pair GBP/USD sank and updated 37-year lows, dipping below 1.1300, hitting a 2022 low of 1.1235 after the US Federal Reserve hiked rates by 75 basis points at its September meeting.
According to the Summary of Economic Projections (SEP), officials opened the door to another 75 basis points in November and a 25 basis point interest rate hike in December. At time of writing, GBP/USD is trading around the 1.1300-50 area in a volatile trading session as Fed Chairman Powell holds a press conference.
Market reaction
GBP/USD fell below 1.1200 after the Fed and hit a yearly low at 1.1234. However, offers entered around year lows and surged towards current price levels, jumping nearly 100 pips, as US Federal Reserve Chairman Jerome Powell took the stand.
Technical levels
Source: Fx Street
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