Forex. Pound/Dollar (GBP/USD) forecast for today
The currency pair is at September price levels. It can be seen being in a higher trading range. The recovery from the nine-month low reached in September is evident, amid growing expectations that the Bank of England may raise interest rates to curb inflation.
The dollar exchange rate declined due to the fall in US bond yields, which fell after they failed to overcome the June high during the inflation panic last week. The yield on 10-year Treasury bonds fell by 1 basis point to 1.57% after the release of negative US industrial production data in September.
The yield on 10-year UK bonds is close to the October maximum, and is now at 1.1615%.
Today, the market will wait for the release of the UK consumer price index. The publication of this indicator with an increase in the current value will prompt the Bank of England to reconsider its conservative monetary policy. It should be noted that the country's inflation has been growing at a steady pace throughout the year. Andrew Bailey said on Sunday that rising energy prices will prolong the momentum of inflation, and the Central Bank will have to act if it sees risks.