Forex. Pound/Dollar (GBP/USD) forecast for today
After reaching a maximum of 1.3510, an attempt to form a trading range is visible. Currently, strong price support is at 1.3471.
The yield on 10-year UK bonds has slightly decreased and is now at 0.9265%. Meanwhile, the dynamics of the yield of US Treasuries keeps the dollar from further strengthening, the yield of 10-year US government bonds rose above 1.5%.
The auction is still influenced by UK inflation data, which once again confirmed the likelihood of a rate hike at the next meeting of the Bank of England in December. According to media reports, this was due to rising prices for fuel, gas and electricity. At the same time, high inflation rates in the eurozone did not support the euro after the European Central Bank made it clear that it was still far from tightening its policy.
The volume of UK retail sales will be published today. The data is better than the forecast can strengthen the pound against the US dollar to the level of 1.3550. The number of construction permits issued will be released at the American session. Richard Clarida, a member of the US Federal Committee on Open Market Operations (FOMC), will speak later. If the US dollar strengthens, then the pound may turn around from current levels.