Forex. Pound/Dollar (GBP/USD) forecast for today
The currency pair is at the December price levels of last year, in a lower trading range.
The yield of 10-year UK bonds is close to the October maximum, and now it is at 0.9970%.
The decline of the pound is strongly influenced by the US dollar, and the reaction of market participants to American statistics. The US GDP turned out to be worse than the previous value and worse than the forecast. But inflationary indicators were the drivers of the strengthening of the dollar against the pound. The index of consumer confidence in the United States in November fell to 67.4 points compared with 71.7 points a month earlier, according to the final data of the University of Michigan. Note that this is the minimum value of the indicator for the last 10 years.
Previously, the indicator was estimated at 66.8 points. Analysts predicted a revision to 66.9 points. The prospects of maintaining high growth rates of consumer prices have a negative impact on the mood of Americans.
Today, the market will be waiting for the volume of UK retail sales for November. This indicator is the main indicator of consumer spending. The current value above the forecast will only strengthen the pound against the US dollar.