GBP/USD Trades Steady as Markets Await More Economic Data Releases

The Sterling is trading steady against the US dollar, holding just above the 1.30 level as traders adopt a wait and watch approach towards the possibility of an upcoming rate cut by the BOE. At the time of writing, GBP/USD is trading around 1.307.

GBP/USD had weakened over the past few days over disappointing economic data releases from Britain and dovish comments from BOE policymakers pointing towards a possibility of an interest rate cut. For now, there is a 57% likelihood that the central bank could announce a 0.25% rate cut in its upcoming monetary policy meeting next week.

Any further data releases that point to worsening in the UK economy after BoJo’s victory in the recent general elections will further reinforce expectations for a rate cut. GBP/USD can be influenced by the release of retail sales and PMI figures from the UK in the coming days.

In addition, GBP/USD faces pressure over concerns about whether Britain will successfully negotiate deals with the EU by the end of this year, when the post-Brexit transition period officially ends.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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