Welcome to the Key to Markets preview of the Week Ahead

Currency Pair Performance

5-day performance as of September 29th, 2022. 11:00 GMT. Source: finviz.com

In case you missed it, last week saw GBP/USD fall to an all-time low. The pound tumbled to 1.0350 against the USD as investors fretted over the Chancellor’s combination of big spending with the most significant tax giveaway.

Looking ahead to the week of October 3rd – 7th, it’s clear that the Bank of England will likely be forced to intervene in the markets due to the ongoing economic challenges facing the UK.

How will this affect me?

For individual traders and investors, the potential intervention by the Bank of England could lead to increased volatility in the currency markets. It’s important to stay informed and be prepared for potential sudden swings in exchange rates.

How will this affect the world?

The Bank of England’s intervention could have broader implications for the global economy, as the UK is a major player in international trade and financial markets. Any drastic measures taken by the central bank could have ripple effects on other economies around the world.

Conclusion

As we look ahead to the Week Ahead, it’s clear that the financial markets are facing significant challenges. Stay tuned for updates and be prepared for potential market reactions to the Bank of England’s actions.