GBP/USD Daily Fundamental Forecast – October 12, 2017
The GBPUSD pair has also been moving higher over the last 24 hours on the back of continued weakness in the dollar that we have been seeing during this period. The dollar was expected to get some support from the Fed in the FOMC minutes that were released but the lack of the same has since led to the dollar weakening and the pound has been able to take full advantage of it so far.
GBPUSD Also Gains on Dollar Weakness
The dollar has been on the backfoot since the end of the last due to the weak NFP data. The market had been hoping to see some strong data from the US over the last week or so, as they can then continue to believe that the Fed would hike rates in December but so far, the data has been a disappointment for the bulls.
They were in for some more disappointment yesterday as the FOMC minutes failed to enthuse the markets. The traders were hoping to see a hawkish FOMC minutes with specific decisions and timelines on when the next rate hike would be but what they got were some generic statements on the economy and the way ahead. This was not enough for the dollar bulls and they gave up as the dollar faced another round of selling which has since pushed the GBPUSD pair through the 1.3250 region.
This region is considered to be a crucial region as far as the pair is concerned as this region would determine the short term direction for the GBPUSD pair. It is a region of high resistance and with the PPI data from the US scheduled to be released later in the day today, we are likely to see some strong volatility in the pair with the bulls and the bears fighting it out amongst themselves to gain control. This is probably the last place where the bears are likely to make a stand before the pair moves towards 1.35.