GBP weakens ahead of interest rate calls
Daily Currency Update
GBP/USD pair remains in focus this week with the Federal Reserve and Bank of England preparing for all important interest rate decisions. Meanwhile, the Pound is displaying weaker positioning against the US Dollar as investors anticipate the release. Monday Spot prices currently trade around the higher ranges of 1.23 highlighting that the pound is in fact under selling pressure following the firm expectations that the Bank of England is nearing the end of its rate-hiking cycle.
The US Federal Reserve is widely expected to hold rates at 5.5% at the Federal Open Market Committee meeting on Wednesday, while the Bank of England is forecast could present one last 25-basis-point rate hike.
Key Movers
It’s a full week for data on the economic calendar for the UK, Consumer Price Index numbers print on Wednesday, Bank of England rate decision Thursday, and Friday sees Retail Sales and Preliminary Purchasing Manager Index figures. United Kingdom inflation figures on Wednesday are expected to increase from -0.4% to 0.7%, Friday’s Retail Sales for August are also forecast to show 0.5% after the previous month’s 1.2% fall.
Over in the United States, Building Permits, Housing Starts on Tuesday – MBA Mortgage Applications, Wednesday’s Federal Reserve interest rate decision will be followed by employment figures on Thursday and the Preliminary Purchasing Managers Index release on Friday.
Expected Ranges
- GBP/USD: 1.2369 - 1.2390 ▲
- GBP/EUR: 1.1579 - 1.1595 ▲
- GBP/AUD: 1.9216 - 1.9271 ▲
- EUR/USD: 1.0676 - 1.0684 ▲