Forex. Pound/Dollar (GBP/USD) forecast for today
The exchange rate of the British currency declined against the US dollar to the level of 1.3440.
The yield of 10-year UK bonds is close to the minimum value of October, and now it is at 0.8750%.
The Industrial Orders Index (CBI) in the UK will be published today. This is one of the main indicators of the state of the industry. A high indicator indicates optimism among manufacturers. The index data is based on the results of a survey of about 550 manufacturers. The growth of the indicator will only strengthen the pound against the US dollar.
Last week, consumer prices in October rose in the country by 4.2% year–on-year, which is more than expected - this is a significant jump compared with a 3.1% increase in September. This has strongly strengthened the pound, and a growth trend has been formed. Before that, employment data in the UK came out, exceeding expectations, despite the termination of the leave without pay program to protect jobs.
This week, the pound will be sensitive to the publication of the following indices: business activity (PMI) in the manufacturing and services sectors, changes in retail sales and industrial orders. Mr. Jonathan Haskell, a member of the Monetary Policy Committee of the Bank of England, will speak on Thursday.
In addition, US GDP for the third quarter, the GDP deflator and the number of initial applications for unemployment benefits will be released this week. Traditionally, the pound paired with the US dollar can show an increase in trading activity.