Yesterday’s high: $1.3221
Yesterday’s low: $1.3123
GBP/USD Hits New Weekly High amid Brexit Hopes
Towards the end of last week, investors sold the US Dollar amid concerns that cuts in corporate tax could be delayed until as late as 2019.
This made it easier for Sterling to capitalise on Friday. Pound investors have become hopeful for major Brexit negotiation progress to be made in December, following a Brexit press conference in Brussels featuring UK Brexit Secretary David Davis and EU chief negotiator Michel Barnier.
USD Outlook: Increased Focus on US Tax Plans Likely
With the US Republican Party looking to begin tackling US tax reform before the end of November, investors are likely to become increasingly focused on that as the month draws on.
Markets already widely expect the Federal Reserve will hike US interest rates in December, with bets at over 90%. As a result, the US Dollar is unlikely to react much to upcoming US inflation data.
Signs that US tax reform plans could pass successfully through Congress would boost USD demand, but signs of obstacles or delays would cause the currency to drop.
As for the Pound, it could continue to climb on Brexit hopes. Sterling demand could be boosted further if upcoming UK data, including inflation and wage growth, beats expectations.
09:30 UK Inflation Rate
13:30 US PPI
09:30 UK Job Market Report
13:30 US Inflation Rate
13:30 US Retail Sales
09:30 UK Retail Sales
14:15 US Manufacturing and Industrial Production
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