Pound Sterling trades subduedly while focus shifts to Fed’s monetary policy
The Pound Sterling (GBP) trades slightly lower against its major currency peers at the start of the week, hovering at around 1.3320 against the US Dollar (USD). In a week in which the United Kingdom (UK) economic calendar is light, the British currency is expected to be influenced by global events and market expectations for the Bank of England’s (BoE) monetary policy outlook.
Traders are confident that the BoE will cut interest rates in the policy meeting next week amid weak UK labor market conditions and signs of a slowdown in inflation . The job market data for the three months ending in September showed that the Unemployment Rate rose to 5%. Meanwhile, the headline Consumer Price Index (CPI) report for October showed that inflation stood at 3.6% on an annual basis, the lowest level in four months. Read more…
GBP/USD might rise, potentially towards 1.3410 – UOB Group
Pound Sterling (GBP) is likely to trade in a range between 1.3290 and 1.3360. In the longer run, GBP is expected to continue to rise, potentially to 1.3410, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
24-HOUR VIEW: “Last Thursday, GBP rose to 1.3385 before retreating. When GBP was at 1.3325 in the early Asian session on Friday, we highlighted that ‘upward pressure has eased, and instead of continuing to rise today, GBP is more likely to trade within a range of 1.3300/1.3365’. Read more…