Home Daily Commentaries Gloomy forecast could weigh on the pound

Gloomy forecast could weigh on the pound

Daily Currency Update

Selling pressure on the pound could arise due to the gloomy economic forecast for the UK.  Corporate leaders in the UK are pressing the Bank of England to promptly reduce interest rates to provide essential assistance to the ailing economy. The Institute of Directors Economic Confidence Index survey reinforces the continued decrease in optimism among British directors concerning the nation's economic outlook for the next 12 months.

Key Movers

The US dollar remains stable, poised for its most robust weekly showing since July. This is attributed to reduced anticipations of imminent and significant interest rate reductions this year, with investors closely monitoring the upcoming US Non-Farm payrolls data later in the day.

Expected Ranges

  • GBP/USD: 1.2635 - 1.2695 ▲
  • GBP/EUR: 1.1585 - 1.1655 ▲
  • EUR/USD: 1.0905 - 1.0965 ▲