In the UK, the focus today will be on the Bank of England Decision Panel survey of CFOs. The most interesting question for the market will be whether expected and realised wage growth continues to slow, notes Chris Turner, FX strategist at ING.
1.3100 is the risk for GBP/USD today
“If so, the market could be tempted to close the gap between the pricing of BoE and Fed easing cycles. Looking at what is set before the end of the year, we see 107bps set for Fed easing and only 44bps for the BoE. We suspect that further easing may be set for the BoE, which could leave GBP/USD a bit vulnerable.”
“Also today, Bank of England chief economist Huw Pill will speak at the Bruegel Institute in Brussels at 11am CET. He voted against rate cuts in August. It is unclear whether he will address monetary policy in his speech today, but if he does, any signs of increased confidence in the disinflation process could also weigh on the pound.”
“1.3100 is the risk for GBP/USD today and in the medium term we see the cable rally contained in the low 1.30s.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
