Pound Sterling Under Pressure, What's Next for GBP/USD?
GBP/USD continued to weaken for the third consecutive session, trading around 1.3120 during Asian trading hours on Thursday. Market participants are now awaiting the release of UK Gross Domestic Product (GDP) data for the third quarter today. This data is expected to provide a clearer picture of the UK's economic performance, which could influence the direction of the pound going forward.
The pound is facing significant headwinds against other currencies, primarily due to growing expectations that the Bank of England (BoE) will cut interest rates in December. BoE policymaker Megan Greene expressed concern about ongoing inflation in the UK and noted that wage data for next year was higher than expected. This suggests the BoE may need to take tighter monetary policy measures.
Furthermore, the GBP/USD weakness was also influenced by the strengthening of the US dollar, driven by optimism that the prolonged US government shutdown will soon end. The US House of Representatives has approved a funding package to end the shutdown, which now awaits President Trump's signature. On the other hand, the Fed's hawkish statement on interest rates also provided additional support for the US dollar, with the market pricing in a rate cut in December. This exacerbated pressure on the pound sterling, which remained under pressure. (az)
Source: Newsmaker.id
