After last week's CPI turned the markets upside down, we are looking at the performance of the US dollar…
GBP/USD: forecast for Dec. 11-15
Last week the British pound managed to touch a 6-month high versus the euro but had worse luck against the US dollar.
There was a bright spot on the Brexit front. Britain and the European Union had struck a deal on Friday that will allow the second phase of talks on the British exit from the EU – the negotiations about trade and transition arrangement. The formal decision will be made at the EU summit, which will take place on Thursday and Friday. This good news, however, didn’t lead to the strengthening of the pound as investors worry that the UK economy is still facing problems.
The Bank of England will meet on Thursday. The central bank is expected to keep interest rates on hold after its rate hike in November. Traders will be looking for any clues over the timing of any future policy tightening in the central bank’s minutes. The latest economic figures from the UK have been mixed: activity in manufacturing sector jumped to more than 4-year high, while service sector growth eased back. The latter is experiencing high inflation. All in all, it’s clear that under the shadow of Brexit, the Bank of England will continue falling behind the Fed. This keeps hurting the pound.
Other events in the UK economic calendar include CPI on Tuesday, labor market figures on Wednesday and retail sales on Thursday.
GBP/USD stayed indecisive below 1.3500. Support is at 1.3260 and 1.3190. If the pair gets above 1.3500, the next obstacle will be at 1.3630.
The release of the US CPI on Wednesday will determine whether US500 continues its advance or reverses down. Tensions between the US and China boosted the demand for gold, but will it persist?
Gold still has space to fall, and the euro is trying to price the ECB rate hike. Inflation readings, Elon Musk problems, earning reports, and the overall market outlook for forex await you in this video.
Although the last week was intense, this one may be more dynamic and volatile. After the FOMC meeting and controversial decisions from the Bank of England, we saw a historical pound decrease, and the gold plunge. And there’s even more for you.
After the US CPI last week came out above the forecast, traders started expecting a 75-basis point rate hike…
In this video, we will talk about the potential change of a trend in the euro, another stock rally amid a global downtrend, gold prospects, and news that shakes the world right now. It’ll be a helpful video you don’t want to miss.