Pound Slips as US Dollar Gains Ground
Updated
The GBP/USD pair traded below 1.2200 as traders awaited crucial inflation and employment data from the United Kingdom. The British Pound (GBP) declined by 0.26% on Friday as the US Dollar strengthened amid safe-haven demand.
GBP/USD has been steadily declining since July due to the narrowing interest rate differential between the UK and the US. Recent higher-than-expected inflation figures in the US and concerns arising from the Israel-Hamas conflict have further weighed on the GBP. Two events this week will significantly impact the Bank of England's (BOE) interest rate decision in November: the Office for National Statistics (ONS) will release the latest Labor Market Overview at 6 AM on Tuesday, and the Price Index for September on Wednesday. GBP traders should exercise particular caution in the next 48 hours.
GBP/USD experienced a slight uptick in Asian trading sessions and early European sessions. The key events for this pair are set to unfold on Tuesday and Wednesday. However, the announcement of the New York Manufacturing Index at 12:30 PM UTC today could cause some fluctuations. If the data comes in lower than expected, GBP/USD might climb to the 1.22250 level.
GBP/USD has been steadily declining since July due to the narrowing interest rate differential between the UK and the US. Recent higher-than-expected inflation figures in the US and concerns arising from the Israel-Hamas conflict have further weighed on the GBP. Two events this week will significantly impact the Bank of England's (BOE) interest rate decision in November: the Office for National Statistics (ONS) will release the latest Labor Market Overview at 6 AM on Tuesday, and the Price Index for September on Wednesday. GBP traders should exercise particular caution in the next 48 hours.
GBP/USD experienced a slight uptick in Asian trading sessions and early European sessions. The key events for this pair are set to unfold on Tuesday and Wednesday. However, the announcement of the New York Manufacturing Index at 12:30 PM UTC today could cause some fluctuations. If the data comes in lower than expected, GBP/USD might climb to the 1.22250 level.
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