GBP/USD Daily Fundamental Forecast – September 27, 2017

The pound has been suffering from the strength of the dollar, something that most of the other currencies also seem to be under but it has to be said that the pound has managed to survive in a much better manner as compared to the other currencies. It has been noted over the last few weeks that the pound has been doing well due to strong support from the BOE and the UK government as well and that has helped to prevent it from being battered.

GBPUSD Showing Strength

As mentioned above, the pound has been well supported by the BOE which has kept the door open for a rate hike later in the year. It was generally believed that the BOE would not want to interfere in the economy at a juncture when the Brexit process is going on at high speed but in their last meeting, they made it clear that they would be ready to act if the need arises. This has helped to bolster confidence in the UK economy and this has helped the pound to move up pretty slowly but also steadily over the last few weeks.

The UK government has also been deftly pushing the Brexit process through the Parliament and this has also helped to calm down nerves in the short term and has helped the pound to grow stronger in due course of time. Though the UK PM May basically extended the timeline for the Brexit by a couple of years, the way that she has been handling the process so far has meant that the public and the investors continue to maintain a lot of trust in the UK economy.

Looking ahead to the rest of the day, we do not have any major economic news from the UK while we have the durable goods data from the US. We can expect the dollar to hold steady at these levels, especially with reports that Trump would be announcing a new tax regime later in the day, and this should keep the GBPUSD pair under pressure.