After last week's CPI turned the markets upside down, we are looking at the performance of the US dollar…
GBP/USD: forecast for Nov. 27 - Dec. 1
GBP/USD managed to strengthen during the last week. Such move was largely due to the weakness of the US dollar.
On the pound’s side, the market keeps waiting for some Brexit news. The main issue is that the European Union wants Britain to pay for its exit, and Britain considers the sum too big. There were media reports that Theresa May managed to convince members of her cabinet to increase the offer. Such rumors helped the pound strengthen. Note, however, that the general public in the UK will likely oppose such decision. The Office for Budget Responsibility (OBR) cut Britain’s growth forecasts. This, however, was no surprise for the market, so it didn’t hurt the pound.
British events to watch for in the upcoming days include the release of bank stress tests results and Inflation Report hearings on Tuesday and manufacturing PMI on Friday. Seven largest British lenders are expected to pass the tests, although the results will reveal how much spare capital they can return to investors.
It seems that this year’s support line at 1.3150 has once again managed to limit the downside. If the pair stays above 1.3300, it will be able to get towards 1.3450/1.3500, where it will find a major resistance. Support is at 1.3250 and 1.3150.
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.