Forex. Pound/Dollar (GBP/USD) forecast for today
The currency pair is in the trading range of 1.3883-1.3772. This time, the US dollar took the lead, which indicates the speculative priority of the US dollar in the foreign exchange market.
The yield on 10-year UK bonds is at the October high, now at 1.2145%. Such an increase in profitability shows the vulnerability of the UK economy to an interest rate hike, which most market participants expect before the end of the year. An increase in debt servicing costs will reduce the ability of the UK Treasury to support the economy.
Today, the UK will publish the index of business activity in the manufacturing sector (PMI) and the index of business activity (PMI) in the services sector. Observations show that business activity in the industrial sector of the kingdom is declining, which causes concern on the part of investors. The downward trend in the industry may put pressure on the pound, which has been in a downward trend since May of this year.
Recall that on Wednesday, the pound was strong against the dollar. The National Statistical Office (ONS) of the country published UK consumer prices for September at 3.1% against a forecast of 3.2%. These figures have not changed expectations that the Bank of England will become the first major central bank in the world to raise rates.