Forex. Pound/Dollar (GBP/USD) forecast for today
The market trend of yesterday continues. Despite the fundamentally strong US dollar against other world currencies, long positions of market participants in the pound allow the currency pair to stay at an acceptable level. The recovery from the nine-month low reached in September is also evident, amid growing expectations that the Bank of England may raise interest rates to curb inflation.
The European session will be opened by the publication of the quarterly and monthly values of UK GDP. This indicator has a high degree of importance. Since April of this year, GDP has been above zero, which serves as a positive signal for the country's economy. At the same time, there are still concerns that the Bank of England's plans are associated with the risks of high inflation, and not with an acceleration in growth rates.
Investors are concerned that the Bank of England is forced to tighten policy in a rather weak economy. There are already signals, the representative of the regulator, Michael Saunders, said that households should prepare for a "much earlier" rate hike, and the governor, Andrew Bailey, expressed concern about the growth of inflation expectations.