Forex. Pound/Dollar (GBP/USD) forecast for today
If traders buy the pound, then the exchange rate of the currency pair may reach 1.3850 and 1.3900. Reliable support is around 1.3645. Traders are waiting for the speech of the head of the Bank of England Bailey.
On Wednesday, the UK will publish the consumer price index and the producer purchase price index. The publication of these indicators with an increase in current values will prompt the regulator to reconsider its conservative monetary policy. 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.
Do not forget about the US Federal Reserve, which intends to revise rates in November. Against such expectations, the US dollar will still be able to show a wave of strengthening not only in pairs with the pound, but also with other world currencies. Recently there have been signals from representatives of the regulator. Michael Saunders said households should prepare for a "significantly earlier" rate hike, and Governor Andrew Bailey expressed concern about rising inflation expectations.
Work on Brexit is still visible, EU officials are calling on Brussels to develop tough retaliatory measures if the UK suspends trade agreements with Northern Ireland. Boris Johnson signed the protocol on Northern Ireland as part of his Brexit plan in 2020. Later, the Prime Minister admitted that the document was agreed hastily and no longer worked for people in Northern Ireland.