GBP/USD soared to a fresh 29-month peak as the US Dollar lost ground, fueled by hopes of a Fed rate cut. With little UK economic data this week, all eyes are on Friday’s US PCE inflation numbers. Here’s a breakdown of what’s happening in the markets:
Wednesday: Quiet Day Ahead
Wednesday is expected to be a consolidation session with minimal economic activity. Keep an eye out for speeches from Fed and Bank of England officials.
Tuesday Recap
US housing data showed mixed results, with the MoM Housing Price Index falling short of expectations. Meanwhile, the S&P/Case-Shiller Home Price Indices exceeded forecasts.
Upcoming Events: US GDP and PCE Inflation
Thursday will see the release of US Q2 GDP figures, while Friday’s US PCE inflation data will be a key focus. Market participants are eagerly awaiting these numbers for insights into potential rate cuts.
Forex Today: Expect Some Consolidation
GBP/USD Forecast
GBP/USD is on track to continue its bullish trend, with technical indicators suggesting further upside potential. While caution is advised for overbought conditions, the pair remains well above key moving averages.
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