Created
: 2024.09.11
2024.09.11 15:12
The GBP/USD pair builds on the overnight modest bounce from the 1.3050-1.3045 region, or over a three-week trough and gains some follow-through positive traction for the second successive day on Wednesday. Spot prices, however, struggle to capitalize on the move beyond the 1.3100 mark and retreat a few pips in the last hour following the release of the UK macro data.
The UK Office for National Statistics reported that the economic growth remained flat for the second straight month in July as compared to expectations for a modest 0.2% growth. Moreover, the UK Industrial and Manufacturing Production unexpectedly shrank during the reported month. This comes on top of a slowdown in the UK wage growth, which lifts bets for more interest rate cuts by the Bank of England (BoE) and undermines the British Pound (GBP).
The US Dollar (USD), on the other hand, attracts some sellers and for now, seems to have snapped a three-day winning streak back closer to the monthly peak amid dovish Federal Reserve (Fed) expectations. This, in turn, offers some support to the GBP/USD pair and helps limit the downside for the GBP/USD pair. Traders also seem reluctant to place aggressive bets and prefer to wait on the sidelines ahead of the release of the US consumer inflation figures.
The crucial US Consumer Price Index (CPI) report should influence market expectations about the size of the rate cut by the Fed at its upcoming policy meeting on September 17-18. This, in turn, will play a key role in driving the USD demand in the near term and provide some meaningful impetus to the GBP/USD pair. Nevertheless, the aforementioned fundamental backdrop warrants some caution before positioning for a further appreciating move for the currency pair.
The Gross Domestic Product (GDP), released by the Office for National Statistics on a monthly and quarterly basis, is a measure of the total value of all goods and services produced in the UK during a given period. The GDP is considered as the main measure of UK economic activity. The MoM reading compares economic activity in the reference month to the previous month. Generally, a rise in this indicator is bullish for the Pound Sterling (GBP), while a low reading is seen as bearish.
Read more.Last release: Wed Sep 11, 2024 06:00
Frequency: Monthly
Actual: 0%
Consensus: 0.2%
Previous: 0%
Source: Office for National Statistics
Created
: 2024.09.11
Last updated
: 2024.09.11
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy