GBP/USD takes a break from sustained losses near 1.3150
GBP/USD has managed to keep pumping the brakes at the outset of another trading week, finding enough friction to hold off on further declines as price action toys with the 1.3150 level. A technical rebound has yet to materialize, and Cable is likely to continue some rough chop in the interim as Pound Sterling (GBP) traders await the Bank of England’s (BoE) latest interest rate decision.
The latest Institute for Supply Management (ISM) Purchasing Managers Index (PMI) report dipped to 48.7 in October, missing expectations and falling back slightly from September’s 49.1. Demand indicators within the ISM report broadly improved over the month; however, all remain in contraction territory, implying that businesses are struggling to find new customers or convince current clients to expand their operations. Overall, manufacturing activity among businesses that bothered to submit responses to surveys showed a net decline in economic activity in the manufacturing sector for an eighth straight month. Read more…
GBP/USD stabilizes as BoE rate decision looms amidst market caution
GBP/USD stabilizes around 1.3140 at the start of the week, virtually unchanged for the day. The Pound Sterling (GBP) trades cautiously ahead of Thursday’s Bank of England (BoE) policy announcement, as markets assess the likelihood of a monetary easing move.
According to a Reuters report, traders see roughly a one-in-three chance of a 25-basis-point rate cut to 3.75%. Such expectations have strengthened after slower UK consumer price growth and signs of moderating labor demand seen in employment data for the three months ending in August. During its September meeting, the BoE already indicated that inflationary pressures were expected to peak around 4% the same month. Read more…