GBP/USD Daily Fundamental Forecast – October 9, 2017

The GBPUSD pair also bounced late in the day on Friday on the back of weak data from the US. But with the fall that we have seen in this pair over the last couple of weeks, we doubt whether the traders and the investors would gain enough confidence in the pair to push the prices higher in the short term. The factors that contributed to the fall in prices continue to exist and this is also another reason why we dont expect the prices to bounce by too much in the short term.

GBPUSD Likely to be Under Pressure

The pair was buoyed for a brief while towards the end of the day as the NFP data came in much weaker than expected. This was the piece of data that the market was looking forward to, for the entire week, as it was likely to determine whether the Fed would be inclined to hike rates in December or not. But this data came in negative and though the wages data came in stronger than expected, it was tempered by the fact that the data could be skewed on account of the hurricanes that hit the US in the last month. This caused dollar weakness and helped the pound prices to move up.

On the other hand, the pound is likely to continue to be under pressure in the short term as the domestic and political pressure on the UK PM May continue to exist and it only seems to be growing by the day. Even if May were to survive this pressure, it is likely that her position would be weakened by the time she sits down with the Eurozone leaders for some hard bargaining. It is this uncertainty that is likely to weigh on the pound in the short term.

Looking ahead to the rest of the day, we do not have any major news from the UK while it is a holiday in the US. So, we can expect some slow and steady trading during the course of the day today with a lot of consolidation and ranging.