Forex. Pound/Dollar (GBP/USD) forecast for today
The pound/dollar exchange rate has consolidated in a higher trading range. If traders buy the pound, then the exchange rate of the currency pair will reach 1.3850 and 1.3900. At the moment, the support level is 1.3583.
Next week, the market will be waiting for the publication of the UK consumer price index. Past data showed growth to a maximum over the past five months, and this then caused a wave of speculative interest in the British pound. If the indicators turn out to be higher than the forecast, the pound may show new purchases. Recall that the volume of industrial production and the data of the manufacturing industry of the kingdom pleased market participants.
Do not forget about the expected changes in the monetary policy of the US Federal Reserve. They provoke the strengthening of the US dollar, not only paired with the pound, but also with other world currencies. And the Bank of England still adheres to a conservative position. Recently, there have been signals from representatives of the regulator against such a situation. Michael Saunders said households should prepare for a much earlier rate hike, and Governor Andrew Bailey expressed concern that inflation expectations had begun to rise.