An event to watch out for today:
09:00 EET. GBP – GDP volume change
GBPUSD:
The Pound-Dollar pair posted losses for the third consecutive day, trading near 1.2660 during Asian hours on Friday. The pair is declining as potential tariff threats from the Trump administration have boosted the US Dollar (USD) across the board and created a headwind for the risk-sensitive British Pound (GBP).
In addition, Thursday’s release of a better-than-expected US Producer Price Index (PPI) report supported the USD and undermined the GBP/USD pairing. The US Producer Price Index rose 0.4% in November from the previous month, the biggest gain since June, following an upwardly revised 0.3% increase in October. The figure was better than the expected 0.2%.
Traders await the U.S. Federal Reserve’s (Fed) interest rate decision, which is scheduled for next week. According to the CME FedWatch Tool, financial markets are now fully pricing in the likelihood of a 25 basis point rate cut on December 18.
Traders are expected to focus on the monthly gross domestic product (GDP) and UK factory data for October, which will be released on Friday. These data will provide an insight into the state of the country’s economy.
Trading recommendation: Trade predominantly with Sell orders from the current price level.
Origin: FreshForex
