27 September 2024, GBP/USD
GBPUSD:
On Thursday, the GBP/USD currency pair reached a 31-month high of 1.3434, marking a significant milestone in its upward trajectory. The surge was largely attributable to a broad-based sell-off in the US dollar, driven by encouraging economic data that allayed concerns about a potential economic deceleration.
The UK market will remain relatively inactive for the remainder of the week, with cable traders awaiting the release of GBP-centric data next week. This will commence with the publication of UK Gross Domestic Product (GDP) data on Monday.
The recent decision by the US Federal Reserve to cut interest rates by 50 basis points prompted concerns in global markets, with some investors questioning whether such a drastic move was a reaction to the looming economic downturn in the US. However, Fed Chairman Jerome Powell clarified that the rate cut was a preemptive measure designed to bolster the US labour market, rather than a reaction to indications of recession.
The positive data on US durable goods orders and weekly initial jobless claims served to reinforce the position of the Fed, with both figures exceeding expectations. The prospect of a 'soft landing' for the economy remained a viable possibility. The release of Personal Consumption Expenditure (PCE) inflation data on Friday will provide crucial insight into the impact of the Fed's recent rate cut.
US Durable Goods Orders in August remained unchanged from the previous month, despite a strong increase in the previous period. However, the figure still beat the projected 2.6% contraction. Additionally, initial jobless claims for the week ending 20 September fell to 218k, beating the expected 225k and signalling a decline from the previous week's revised 222k.
Trading recommendation: Trading predominantly Buy orders from the current price level.
Up to $20 for each lot in real money - get a guaranteed income by connecting Cashback promotion!
id 
ar 
ru 
vn 
es 
pt 
th 
kz 
ua 
tj 
uz 
az 
ms 