GBP/USD remains negative as Fed holds rates unchanged ahead of Powell’s press conference

• GBP/USD oscillates around 1.2120 following the Federal Reserve's decision to keep rates unchanged.
• Fed acknowledges steady economic activity but emphasizes commitment to returning inflation to 2% target.
• Traders bet on the end of Fed rate hikes, with first-rate cuts eyed at June 2024.

The GBP/USD oscillates at around 1.2108 after the US Federal Reserve (Fed) decided to keep rates unchanged at the 5.25% - 5.50% range and said it is prepared to adjust its policy stance “as appropriate.”

Federal Open Market Committee (FOMC) monetary policy statement

The Fed’s decision was unanimously approved. In its monetary policy statement, Fed officials acknowledged that economic activity expanded steadily in Q3, mentioning that job gains had moderated. However, they noted that inflation is too high, and emphasized the committee is firmly committed to returning inflation to its 2% target.

According to Reuters, US short-term interest rate futures are added to earlier gains as traders bet Fed rate hikes have ended. Additionally, the first-rate cuts are eyed at June 2024.

GBP/USD Reaction to the Fed’s decision

So far, the GBP/USD failed to gain traction, as it seems traders are awaiting Jerome Powell’s press conference, at around 18:30 GMT. However, initial support is seen at the November 1 low at 1.2095 before extending towards the October 26 low of 1.2069. Key resistance is at 1.2164 before advancing towards the October 31 swing high at 1.2200.