Start
trading

Main >
Analytics
>
Fresh forecast
>
Forex Fundamental Analysis
>
Expectations that the Bank of England will cut rates less than the Fed

Expectations that the Bank of England will cut rates less than the Fed | 13 September 2024

13 September 2024, GBP/USD

Expectations that the Bank of England will cut rates less than the Fed

GBPUSD:

The GBP/USD pair is gaining positive momentum for the second consecutive day and recovering from more than three-week lows around the psychological 1.3000 mark reached on Wednesday. The momentum is lifting spot prices to the mid-1.3100s, or a fresh one-week high during the Asian session, and it is supported by the supply tone around the US Dollar (USD).

The U.S. Dollar Index (DXY), which tracks the dollar against a basket of currencies, slipped to a more than one-week low amid rising bets on a larger interest rate cut by the Federal Reserve (Fed), helped by a softer U.S. Producer Price Index (PPI) report on Thursday. Dovish Fed expectations are keeping US Treasury yields near 2024 lows, which, along with the upbeat market sentiment, is undermining the safe-haven Dollar and acting as a tailwind for GBP/USD.

Bulls, meanwhile, seem unaffected by bets on further interest rate cuts by the Bank of England (BoE), especially after data released this week pointed to slowing UK wage growth and a flat GDP print in July for the second consecutive month. Markets, however, believe that the Bank of England will ease policy less than the Fed over the next year. This, in turn, would favor the British Pound (GBP) and prove to be another factor providing additional support to the GBP/USD pair.

However, it remains to be seen whether the bulls will be able to capitalize on this move or refrain from aggressive bets ahead of key central bank events next week. The Fed will announce its decision following its two-day meeting next Wednesday. This will be followed by the crucial Bank of England meeting on Thursday, which will play a key role in providing meaningful impetus to the GBP/USD pair and determining the next stage of directional movement.

Trading recommendation: Watch the level of 1.3150, if the level is fixed above consider Buy positions, if it rebounds consider Sell positions.

FreshForex offers a wonderful 300% bonus on every deposit of $100 or more, giving you the opportunity to increase your trading volumes!

David Johnson
Analyst of «FreshForex» company
Agree with the review?
Traders' opinion:
Close
Log in

Tunjukkan kata laluan

Hide password

 Terlupa kata laluan anda?
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .

Our best awards:

FreshForex is a brand that provides access to online trading for clients from more than 158 countries all over the world. The Company's partners are the licensed European liquidity providers, banks, payment aggregators and systems with which the company has been cooperating for more than 19 years.
Clients must be at least 18 years old to use the services of the Company.
The company's services and information on the site are not intended for citizens and residents of some countries, such as Belgium, China, North Korea, France, Hong Kong, Russian Federation, Spain, Great Britain, USA, and also countries identified by the FATF as high-risk countries or countries with serious AML/CFT deficiencies; countries or regions that are under international sanctions. A complete list is available on the "Countries where the company's services are not provided" page. The Company does not have representative offices in the Russian Federation and does not register clients from the Russian Federation.
Risk Warning: Trading financial instruments with leverage carries high risks and can result in both profits and losses. Potential losses are limited by the deposit amount. Before deciding to trade, the client should assess their risk tolerance, experience, and knowledge level.

Freshforex.com uses cookies for better website operation, traffic flow analysis, and personalization. By using this website you agree to our Cookie Policy.
User Data privacy is protected in accordance with GDPR. The SSL certificate installed on the website transfers the information over a secure protocol.
The site contains links to websites of third parties. The Company does not check or control the third-party resources that are in any way related to the FreshForex site, so the Company is not responsible for any third-party information or materials posted.
By creating a link to a third party website, the Company does not endorse or recommend any products or services offered by the third party.
The website content is intended for informational purposes only. It should not be regarded as an offer or solicitation to any person in any jurisdiction in which such an offer or solicitation is not authorized. It also should not be considered as an offer/solicitation to any person to whom it would be unlawful to make such an offer or solicitation, nor regarded as a recommendation to buy, sell or otherwise deal with any particular currency or any other trading asset investment. If you are not sure about your local trading regulations, please, leave this website immediately.
© 2004—2024 FreshForex – Forex broker
Reproduction of the contents is allowed only with active hyperlink to original source.