Yesterday’s high: $1.3278
Yesterday’s low: $1.3163
US Dollar Fails to Hold against Pound Surge
Investors haven’t had enough reason to keep buying the US Dollar, causing it to easily drop against a strong Pound yesterday. GBP/USD surged to a one-year-high on Tuesday morning as markets digested a higher-than-expected UK inflation report.
With UK inflation stronger than expected, speculation has flared up again that the Bank of England (BoE) could be pressured into tightening UK monetary policy.
The US Dollar, on the other hand, has lacked notable supportive domestic data and Federal Reserve interest rate hike bets are still low.
USD Outlook: Thursday’s Session in Focus
Thursday could see some major movements in both the Pound and the US Dollar.
The Bank of England (BoE) will hold its September monetary policy decision and this will indicate whether the bank’s tone has been affected by the strong UK inflation results or not.
Not only that, but the afternoon will see the publication of August’s US inflation results. US inflation has a major impact on Fed interest rate hike bets. GBP/USD could plunge at the end of the week if US inflation is better-than-expected.
09:30 UK Employment Report
12:00 Bank of England Policy Decision
13:30 US Inflation Rate
13:30 US Retail Sales
15:00 US Michigan Consumer Sentiment
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