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The British pound strengthens

The British pound strengthens | 21 March 2024

21 March 2024, GBP/USD

The British pound strengthensAn event to watch out for today:

14:00. GBP - Bank of England Key Interest Rate Decision

14:30. USD - Unemployment Claims

15:45. USD - Composite PMI

GBPUSD:

The GBP/USD pair is gaining momentum in the early hours of Asian trading on Thursday. The pair's recovery is supported by the weakening of the US dollar (USD) following Federal Reserve (Fed) Chairman Powell's press conference. Investors will be closely watching the Bank of England's (BoE) interest rate decision on Thursday, as well as S&P Global's preliminary US PMI for March. Currently, the Pound-Dollar pair is trading at 1.2797, having added 0.09% on the day.

On Wednesday, the US Federal Reserve decided to keep the benchmark overnight lending rate in the range of 5.25% to 5.5%. Fed Chairman Jerome Powell did not give a timeline for the rate cut, but he expects the interest rate to be lowered by the end of this year. According to the CME FedWatch Tool, futures markets are pricing in a 75% probability that the Fed will begin cutting rates at its June meeting.

In the U.K., the Bank of England is expected to leave the interest rate unchanged at 5.25% on Thursday. CPI inflation data in February could force the Bank of England (BoE) to continue on a course of lowering interest rates in the coming months. Data released on Wednesday showed that the Consumer Price Index (CPI) rose 3.4% y/y in February, up from 4.0% in January, below the market consensus forecast of 3.6%. The figure was the weakest since September 2021. Meanwhile, core CPI declined to 4.5% y/y in February from 5.1% in January, worse than the estimate of 4.6%.

Trading recommendation: Trade with Buy orders from the current price level, watch the level of 1.2800.

Important macroeconomic news is coming out today, you can take advantage of it! Connect 101% Drawdown bonus and trade with double deposit! Bonus funds will help you increase your profits or withstand a sudden drawdown!

David Johnson
Analyst of «FreshForex» company
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