Forex. Pound/Dollar (GBP/USD) forecast for today
Trading Wednesday showed the pound/dollar exchange rate at the levels of mid-September. After reaching a maximum of 1.3834, an attempt to form a trading range is visible. Currently, strong price support is at the levels of 1.3745 and 1.3670.
On Thursday, the CBI UK Industrial Orders index for October will be released. There is an accelerated growth rate. Since May of this year, the indicator has increased from 17 to 22 points in August. If this trend continues in the latest publication, then the pound, paired with other world currencies, may strengthen significantly.
The yield on 10-year UK bonds is close to the October maximum, and is now at 1.1530%. Meanwhile, the dynamics of US Treasuries yields keeps the dollar from further decline, the yield of 10-year US government bonds rose above 1.6%.
On Wednesday, the pound was strong against the dollar. The National Statistical Office (ONS) of the country published UK consumer prices for September at the level of 3.1%. There is an increase compared to the same month last year. Inflation slowed down compared to August's 3.2%. Analysts surveyed by Trading Economics, on average, expected consumer prices to rise by 3.2% in September. These figures have not changed expectations that the Bank of England will become the first major central bank in the world to raise rates.