GBP/USD catches fresh bids on renewed US Dollar selling pressure
GBP/USD rallied over one-third of one percent on Thursday, bolstered by fresh US Dollar (USD) weakness as investors pile into bets that the Federal Reserve (Fed) will finally be pushed into a series of interest rate cuts through the rest of the year. Global markets are pivoting into waiting for next week’s Fed rate call, slated for September 17, with a Bank of England (BoE) rate call right behind the Fed that is unlikely to draw nearly as much attention.
Headline US CPI inflation rose again in August, with the annualized index rising to 2.9% and the monthly number accelerating to 0.4% as front-end inflationary pressure continues to build. Shelter and food prices were the largest drivers of near-term inflationary pressure, with the grocery items index rising 0.5% over a single month. Core CPI inflation, or headline inflation less energy and food prices, rose to 2.9% YoY, landing within median market forecasts. Read more…
United Kingdom FX Today: GBP holds firm before critical GDP report
The British Pound (GBP) is trending flat against the US Dollar (USD) on Thursday, trading at 1.3535 despite a spike in volatility following the release of US inflation data. Traders are now turning their attention to the release of UK Gross Domestic Product (GDP) data for July, due on Friday at 06:00 GMT.
GDP is expected to shed new light on the country’s economic dynamics and could mark a turning point in the market’s perception of the Bank of England’s (BoE) monetary policy and the economic program of UK Prime Minister Sir Keir Starmer’s government. The analyst consensus is for monthly growth to stagnate after an unexpected 0.4% rebound in June. The GBP’s evolution on the Forex market will depend heavily on the macroeconomic signal sent by this reading. Read more…
