Skip to content GBPUSD Fundamental Analysis – 22-October-2024
The British pound has dipped to $1.302, nearing its two-month lowest point of $1.2974 last Thursday. This drop is primarily due to the strengthening of the U.S. dollar, fueled by the United States’ strong economic indicators.
The GBP/USD 4-hour chart below demonstrates the price, support, and resistance levels.
U.S. Dollar Strengthens on Strong Retail Sales Data
The U.S. dollar’s rise follows unexpectedly strong retail sales figures and a reduction in unemployment claims. These signs of economic vitality have prompted investors to rethink their expectations concerning the Federal Reserve’s cuts in interest rates.
In the United Kingdom, inflation has taken a surprising turn downwards, falling to 1.7% in September. This is notably below the Bank of England’s target of 2%. This development has sparked discussions among investors about the potential for more significant rate cuts by the Bank.
Market Awaits Andrew Bailey’s Insights and U.K. PMI Data
The investment community is now keenly awaiting further commentary from Andrew Bailey, the Governor of the Bank of England. Additionally, they are looking forward to upcoming data from the purchasing managers’ index (PMI) to gauge the future economic trajectory of the U.K.
Final Word
These economic updates are crucial for forex traders and investors. They help them strategize their next moves based on the economic strengths and weaknesses indicated by these figures. Understanding these indicators can provide a strategic edge in the highly volatile forex market.
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