The Bank of England is probably the organization that impacts the most the GBP/USD. It has a wide range of responsibilities, similar to those of most central banks around the world. It issues currency and, most importantly, it oversees monetary policy.
Jerome Powell took office as chairman of the Board of Governors of the Federal Reserve System in February 2018, for a four-year term ending in February 2022. His term as a member of the Board of Governors will expire January 31, 2028. Born in Washington D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and earned a law degree from Georgetown University in 1979.
GBPUSD Outlook
Andrew Bailey is the new Governor of the Bank of England since 16 March 2020. He is widely and deeply respected for his leadership managing the financial crisis, developing the new regulatory frameworks, and supporting financial innovation to better serve UK households and businesses. Each participant’s bias is calculated automatically based on the week’s close price and recent volatility. Therefore, if UK wage growth confirms fears that British services inflation remains high, BoE rate cut expectations might drop, boosting the pound. Moreover, the pound would rally, given the declining US labor market.
The pound had a bearish week, fluctuating amid mixed US economic data. In this chart, the close price is shifted behind so it corresponds to the date when the price for that week was forecasted. This enables the comparison between the average forecast price and the effective close price. USD/JPY remains under some selling pressure on Friday and hits a fresh YTD low. The divergent Fed-BoJ policy expectations continue to weigh heavily on the pair.
BoE policymakers continue to push back against expectations of rate cuts next year. However, deteriorating economic performance prompted money markets to begin pricing in four 25 bps rate cuts starting from the summer, anticipating the key rate to be slashed from 5.25% to as low as 4.25% by the end of 2024. Next week, investors will pay attention to the UK’s employment and GDP data.
WTI consolidates its recovery gains registered over the past two days amid mixed cues. Concerns about slowing demand in China and the US cap the upside for Crude Oil prices. Dovish Fed-inspired broad-based USD weakness offers support and helps limit losses. Import Price Index and Export Price Index data for July will be featured in the US economic docket.
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- Born in Washington D.C., he received a bachelor’s degree in politics from Princeton University in 1975 and earned a law degree from Georgetown University in 1979.
- Meanwhile, US inflation data will be the last major report before the Fed’s policy meeting.
- Therefore, if UK wage growth confirms fears that British services inflation remains high, BoE rate cut expectations might drop, boosting the pound.
- This measure is basically an arithmetical average of the three central tendency measures (mean, median, and mode).
Later in the session, the University of Michigan will release the preliminary Consumer Sentiment Survey for September. Meanwhile, US stock index futures trade marginally higher on the day. In case risk flows continue to dominate the action in the American session, GBP/USD could inch oanda review higher heading into the weekend.
About British Pound / U.S. Dollar
The author has great exposure to different financial markets and institutions. He’s well-known for his day trading reviews and multiple timeframe analysis. Meanwhile, the nonfarm payrolls report showed a smaller-than-expected job increase in August. Meanwhile, data on business activity in the services sector showed a better-than-expected improvement, indicating a resilient economy.
GBP/USD Weekly Forecast: Fed Rate Forecasts Pushes Dollar Up
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. The City of London includes a lot of organizations and institutions that might impact the cable, in particular the London Stock Exchange, the third-largest stock exchange in the world. The LSE allows companies to raise money, increase their profile and obtain a market valuation through a variety of routes, thus following the firms throughout the whole IPO process. By displaying three central tendency measures (mean, median, and mode), you can know if the average forecast is being skewed by any outlier among the poll participants.
Amidst looming inflation and growth concerns, the political developments on both sides of the Atlantic are likely to be closely followed. Softer-than-forecast producer inflation data made it difficult for the USD to stay resilient against its major rivals. The US bureau of Labor Statistics (BLS) reported that the Producer Price Index rose 1.7% in August, down from 2.1% in July and below analysts’ estimate of 1.8%.
GBP/USD Weekly Forecast: Dismal NFP Boosts Pound, Eyes on BoE
Powell served as an assistant secretary and as undersecretary of the Treasury under President George H.W. Bush. Setting out to analyze the GBP/USD price outlook for 2024, there are plenty of unknowns and looming uncertainties that make it difficult to convincingly predict the course of the Pound Sterling against the US Dollar (USD) in the year ahead. This measure is basically an arithmetical average of the three central tendency measures (mean, median, and mode). It smooths the typical outcome eliminating any possible bitbuy review noise caused by outliers. The broad-based selling pressure surrounding the US Dollar (USD) and the improving risk mood helped GBP/USD gather bullish momentum in the second half of the day on Thursday.
The GBP/USD (British Pound/U.S. Dollar) is the abbreviation for the British pound and U.S. dollar currency pair. Also called “the cable”, this cross belongs to the group of Majors. The GBP/USD tends to have a negative correlation with the USD/CHF and a positive correlation to the EUR/USD currency pairs. The Sterling is one of the four most liquid currencies in Forex and one of the reasons is the highly developed capital market. While 60% of the volume of foreign exchange are made via London, the GBP is not the most traded currency but is quite popular due to the good reputation of the UK monetary policy and a high interest rate.