Yahoo Finance GBP/USD Daily Fundamental Forecast – November 22, 2017
The GBPUSD pair continues to trade in a tight manner over the last 24 hours, similar to what the rest of the market has been doing. After having faced a lot of volatility in the first day of the week, the traders have now been positioning themselves for bigger battles ahead and this has been marked by the fact that the ranges have reduced over time and now the market seems to be waiting for the next event to happen.
GBPUSD Awaits Major Events
It is likely to continue to be a busy week for the pound traders as we have already seen some good action and the surprising fact has been the stability in the pound despite the domestic political issues and the internation issues in the form of instability in Germany. None of these seem to have affected the pound so far which continues to trade in a strong and steady manner for much of the week so far. That is likely to be put to test today as we have some major economic events lined up in both the UK and the US for today.
In the UK, we are going to see the autumn forecast statement late in the London session which would basically give us what they think about the economy at this point of time and also tell us what they forecast would happen to the economy. This is an annual exercise and is likely to give a glimpse about what the BOE thinks about the inflation and prospects of further rate hikes in the first half of next year. Any kind of hawkishness in this report is likely to push the pound towards 1.34.
Later in the US session, we will also be having the release of the FOMC minutes which is something that the market has been waiting for, to see what the Fed thinks about the rate hike in December. We believe that the Fed would go ahead with the hike in December but the market would like to see some more confirmation of the same and also any hints on the timeline for further rate hikes. It should be a highly volatile day for the pound.
This article was originally posted on FX Empire
