Published: 07/04/2022 By ECAPThe pound retreated against the dollar this morning after posting a daily high of just over 1.31, before consolidating around the 1.3080 figure. The pair gained some traction early morning pushing higher on the renewed hawkish outlook by the US FED however since those initial gains, sterling has come under pressure and hasn't been able to push its head back over that key 1.31 figure.
The release of the FED meeting minutes showed that policymakers were prepared to make a 50bps hike amid concerns of inflation within the economy. This shows that the FED are very much still on the aggressive path and puts a further spotlight onto the Bank of England whom have somewhat fallen behind in the race to hike rates.
With no real data due out from both nations for the remainder of the week, we will see risk sentiment take centre stage and expect the pair to be largely range bound.