GBPUSD:
On Friday, during the Asian trading session, the GBP/USD pair is showing moderate losses near the 1.3440 mark. The US dollar (USD) is strengthening against the pound sterling (GBP) after reports that Federal Reserve (Fed) Governor Christopher Waller has become the leading contender for the Fed chairmanship currently held by Jerome Powell. Fed representative Alberto Musalem will speak later on Friday.
Waller last week advocated a 25 basis point (bp) rate cut, while his colleagues voted to keep rates unchanged. Traders now estimate the probability of a rate cut in September at almost 93%, with at least two rate cuts expected by the end of the year.
In addition, US President Donald Trump on Thursday selected Steven Muran to the Fed’s Board of Governors.
The Bank of England (BoE) decided at its August meeting on Thursday to cut interest rates from 4.25% to 4.0%. However, four of the nine members of the Monetary Policy Committee voted to keep rates unchanged, indicating a possible end to the BoE’s rate-cutting cycle.
The UK central bank announced a “gradual and cautious approach” to further cuts in the bank rate, but added that “the restrictive nature of monetary policy has weakened as the bank rate has been reduced.”
Trading recommendation: SELL 1.3455, SL 1.3495, TP 1.3395
Origin: FreshForex
