25 September 2024, GBP/USD
GBPUSD:
GBP/USD continued to rally the Pound for the second day in a row, breaking above 1.3400 and hitting new 30-month highs after the US Dollar weakened significantly on Tuesday.
Wednesday will be quiet for the Pound in terms of data, although traders will be keeping an eye on statements from Bank of England Monetary Policy Committee (MPC) member Megan Green. MPC member Green will be speaking at the North East England Chamber of Commerce.
The U.S. portion of Wednesday's economic data list is also underweight for the midweek market session. August's monthly new home sales figure is unlikely to have much momentum one way or the other, followed by a speech from Federal Reserve Board of Governors (Fed) member Adrian Kugler, who will speak at Harvard's Kennedy School in Cambridge.
Consumer confidence deteriorated across the board on Tuesday, with consumer expectations for 12-month inflation accelerating to 5.2 per cent. Consumers also reported a general weakening in their six-month outlook for household financial conditions, and consumer assessments of overall business conditions turned negative.
The pullback in consumer confidence results triggered renewed trading in the rates markets in favour of a subsequent sharp rate cut in November. According to the CME's FedWatch tool, rates markets are pricing in nearly 60% probability of a second 50 bps rate cut. 7 November and only a 40% probability of a more reasonable subsequent 25bp rate cut. Earlier in the week, traders were estimating roughly equal odds of a 50bp or 25bp rate cut.
Trading recommendation: Trade predominantly with Buy orders from the current price level
Fund your account with cryptocurrency and you will receive up to 10% in balance on your first deposit. The additional funds will be used for trading, increasing trading volumes and helping you withstand drawdowns.
en 
id 
ar 
ru 
vn 
es 
pt 
kz 
ua 
tj 
uz 
az 
ms 