Yesterday GBPUSD drew a bullish candlestick continuing the previous bullish trend. Price formed a high of 1.31186, a low of 1.30101, and closed at 1.30830.
The market seems increasingly confident that the Fed will cut interest rates in September. Data from the FedWatch tool now shows 64% believe the Fed will cut interest rates by 25 bps and 36% believe the Fed will cut interest rates by 50 bps.
At the FOMC in July, Fed officials decided to keep the benchmark interest rate stable, with a tendency for some officials to start easing.
The main source for investors looking for clues about a rate cut is Fed Chair Jerome Powell's statement at the Jackson Hole Symposium on Thursday-Saturday which predated Powell's statement on Friday.
On the other hand, market expectations for a reduction in BoE interest rates have also increased. The UK Consumer Price Index (CPI) report for July showed core inflation slowed by 3.3% from the forecast of 3.4%.
Today investors focus on news that may have a high impact on currencies, Flash Manufacturing PMI and Flash Services PMI UK and US.
UK Manufacturing PMI is forecast at 52.1, the same as the previous release, and services PMI is forecast at 52.8 from the prior release of 52.5.
US Manufacturing PMI is forecast at 49.5 from the previous release of 49.6 and services PMI is forecast at 54.0 from the prior release of 55.0. Meanwhile, US unemployment claims are predicted to increase by 232k from the prior release of 227k.
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The market seems increasingly confident that the Fed will cut interest rates in September. Data from the FedWatch tool now shows 64% believe the Fed will cut interest rates by 25 bps and 36% believe the Fed will cut interest rates by 50 bps.
At the FOMC in July, Fed officials decided to keep the benchmark interest rate stable, with a tendency for some officials to start easing.
The main source for investors looking for clues about a rate cut is Fed Chair Jerome Powell's statement at the Jackson Hole Symposium on Thursday-Saturday which predated Powell's statement on Friday.
On the other hand, market expectations for a reduction in BoE interest rates have also increased. The UK Consumer Price Index (CPI) report for July showed core inflation slowed by 3.3% from the forecast of 3.4%.
Today investors focus on news that may have a high impact on currencies, Flash Manufacturing PMI and Flash Services PMI UK and US.
UK Manufacturing PMI is forecast at 52.1, the same as the previous release, and services PMI is forecast at 52.8 from the prior release of 52.5.
US Manufacturing PMI is forecast at 49.5 from the previous release of 49.6 and services PMI is forecast at 54.0 from the prior release of 55.0. Meanwhile, US unemployment claims are predicted to increase by 232k from the prior release of 227k.
View attachment 7294
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