GBP price, news and analysis:
- GBP / USD will continue to trade broadly, with little prejudice.
- It basically reflects US dollar growing speculation that the Federal Reserve will tighten U.S. monetary policy earlier than analysts had predicted.
GBP / USD is tilted to the negative side
Analysts continue to speculate that the Federal Reserve will tighten US monetary policy earlier than expected after last week’s strong US labor data. It helps to raise the US dollar in every way and has rejected couples like GBP/USD although, as the graph below shows, the tilt of the negative sides is quite weak.
GBP / USD price chart, hourly schedule (July 28 – August 10, 2021)
Source: IG (click for larger image)
In addition, the US dollar is backed by news that the US Senate will vote today on a trillion-dollar infrastructure bill that is expected to pass. However, it will have to be adopted by the House of Representatives sometime after Parliament returns from the summer recess at the end of next month.
In the near future, the next step in pairs such as GBP / USD may depend on tomorrow’s US inflation data. The overall interest rate is expected to fall to 5.3% per annum, compared to the previous 5.4%.
– Written by Martin Essex, analyst
Feel free to contact me on Twitter @MartinSEssex