GBP/USD Corrects; Consolidates at 1.34–1.35
GBP/USD weakened on Thursday, snapping a four-session rally after being rejected at 1.3500. The pair settled back into the 1.3400–1.3500 range, with the price holding below the 50-day EMA, indicating temporary downward momentum.
The market paused awaiting clarity on how long the US government shutdown would last and its impact on the economy. The UK data docket was empty on Friday, while in the US, the Nonfarm Payrolls (NFP) and weekly jobless claims were not released due to BLS operational guidelines during a shutdown. Several sources said the NFP was ready but was being held back until government funding was restored.
On the policy front, the CME FedWatch showed the market had already priced in another interest rate cut on October 29, with a >90% chance of a third cut on December 10. Market participants also expect another cut in March/April next year. With the data blackout, the near-term direction of GBP/USD will be largely determined by USD sentiment and the Fed's communication. (ads)
Source: Newsmaker.id
