The GBP Bounces Back
London: 11 October 2023 (TraderMade): The British pound is staging a comeback after weeks of losses, driven by changing expectations regarding a US Federal Reserve rate hike. Economists and financial experts have mixed opinions about the next Fed interest rate decision.
Significant GBP pairs
GBP/USD is showing signs of a potential recovery. The pair was at 1.22119 yesterday and reached 1.22768 today.
Similarly, EUR/GBP was at 0.86406 on 8 October. It has slipped to 0.86345 today (8:30 AM GMT).
Upcoming economic data matters
The US Dollar's inability to attract significant safe-haven demand, despite geopolitical tensions, highlights the critical role of interest rates and monetary policy.
Attention is focused on the upcoming release of the US Consumer Price Index (CPI) data scheduled on Thursday. Any moderation in inflation could prompt adjustments in long USD positions.
Additionally, the market is awaiting the UK GDP data to be published on Thursday. The UK's economic challenges have impacted the pound's performance against the strong US dollar. Signs of improved UK growth could lead to a crucial price movement among GBP pairs.
