GBPUSD:
On Monday, the GBP/USD pair continued its uncertain bullish trend, testing the level above 1.3600 for the first time since July. At the start of the new trading week, the US dollar (USD) fell across the board as investors braced for an important interest rate decision by the Federal Reserve (Fed).
Traders will be watching to see if the Fed meets market expectations for rate cuts before the end of the year, when the Economic Projections (SEP), also known as the “dot plot” of policymakers’ rate expectations, will also be released on Wednesday during the rate decision announcement. Markets are betting that the Fed will cut rates three times before the end of the year, with rate markets pricing in a nearly 75% chance of a 75 basis point Fed rate cut by January.
The Bank of England (BoE) is also due to announce its interest rate decision on Thursday, but the consensus is that the UK central bank will vote 7-2 to keep rates at their current level. On Wednesday, UK consumer price index (CPI) inflation data will also be released, which is expected to show a slight acceleration in inflationary pressures, with annual CPI inflation forecast to be around 3.9% year-on-year, compared to 3.8% in the previous period.
Trading recommendation: BUY 1.3645, SL 1.3600, TP 1.3710
Origin: FreshForex
