GBPUSD pair continues to rise ahead of UK economic data.
The GBPUSD pair is still on a winning streak that started on Thursday. Moving higher on Tuesday during the Asian session, close to 1.2270. The US Dollar (USD) correction and better risk sentiment provide upward support for the pair.
August employment figures in the UK are predicted to fall.
The UK is getting ready to release the S&P Global PMI and Employment data. Economists predict that employment will decrease during the three months preceding August. Indicating that businesses are reducing their personnel due to a dismal forecast for demand.
Due to rising borrowing costs and high inflation. Households are experiencing financial strain. Which is reflected in the decline in retail sales. Expectations of consumer inflation are probably going to be significantly impacted by the significant decline in consumer spending. As a result of the weakening spending dynamics. There is conjecture that the Bank of England (BoE) may decide to hold the current interest rates at 5.25% during its policy meeting in November.
GBPUSD pair may have faced challenges as a result of Israel and Hamas.
The GBPUSD pair may have faced challenges as a result of Israel and Hamas’ geopolitical tensions. But the stronger risk profile is helping to keep the pound sterling (GBP) strong. Market volatility has decreased as a result of diplomatic efforts to defuse tensions in the Israel-Hamas Gaza Strip. Increasing risk appetite by counteracting risk aversion.
The US Dollar Index (DXY) continues to decline for the fourth day in a row, possibly due to lower US Treasury yields. As of right now, the spot price is roughly 105.40. The yield on the 10-year Treasury bond shot up to 5.02%, the highest level since 2007. But by the most recent update, it had quickly reversed course and dropped to 4.85%.
President of the Atlanta Federal Reserve Raphael Bostic expressed skepticism about a rate cut by the US central bank before the middle of the following year. Fed Cleveland President Loretta Mester stated that the US central bank is either at or very close to the peak of the rate hike cycle, while Fed Philadelphia President Patrick Harker expressed a preference for keeping interest rates at current levels.
Market watchers are anticipating a week full of data. The US S&P Global PMI will be closely examined on Tuesday, and the Q3 GDP numbers will be closely monitored on Thursday. Friday’s highlight of the week is the Core Personal Consumption Expenditures (PCE).
