Friday’s high: $1.3216
Friday’s low: $1.3128
GBP/USD Slips Slightly from Monthly High
Last week saw one of the best weekly GBP/USD gains in months, as the US Dollar broadly weakened.
On Friday, Sterling advanced due to the latest UK manufacturing production results, which beat expectations in both monthly and yearly prints. NIESR’s UK growth projection also impressed traders.
However, GBP/USD slipped slightly from its best levels on Friday evening as July’s US wholesale inventories results beat expectations and came in at 0.6%. Overall though, this report did little to improve Fed rate hike bets, leaving markets still generally dovish on the US Dollar.
USD Outlook: Inflation in Focus Next Week
Next week will be a big one for central bank speculation, as August inflation results come in for Britain and the US.
The Bank of England (BoE) will also be holding its September policy decision.
If UK inflation beats expectations, Sterling could advance as investors await the BoE – but unless the BoE also takes a hawkish stance the Pound may not sustain its gains.
US inflation data will come in on Thursday. Some Fed officials still believe inflation will rebound and could still support a third 2017 Fed rate hike bet. As a result, the upcoming US inflation report could have a notable impact on Fed bets and the US Dollar.
09:30 UK Inflation Rate
09:30 UK Employment Report
09:30 UK Retail Sales
12:00 Bank of England Policy Decision
13:30 US Inflation Rate
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