The GBP/USD pair saw some significant movement last week, with the pound rising against the US dollar after a disappointing Non-Farm Payrolls (NFP) report. The NFP report, which measures the number of jobs added or lost in the US economy, came in well below expectations, causing the dollar to weaken and the pound to strengthen.
This week, all eyes will be on the Bank of England (BoE) meeting, where policymakers will discuss interest rates and monetary policy. The BoE is expected to keep interest rates on hold at 0.1%, but investors will be looking for any hints of future rate hikes or changes to the bank’s asset purchase program.
In addition to the BoE meeting, there are several other key events that could impact the GBP/USD pair this week. On Tuesday, UK inflation data will be released, giving investors a better idea of how the UK economy is performing. Higher inflation could put pressure on the BoE to raise interest rates sooner than expected, which could strengthen the pound.
On Wednesday, the US Federal Reserve will release its latest meeting minutes, which could provide insight into the central bank’s plans for monetary policy. Any hints of future rate hikes or changes to the Fed’s asset purchase program could impact the dollar and the GBP/USD pair.
Technical analysis of the GBP/USD pair shows that it is currently trading above its 50-day moving average, indicating a bullish trend. However, resistance is seen at the 1.3900 level, with support at 1.3700. Traders should keep an eye on these levels for potential breakouts or reversals.
Overall, the outlook for the GBP/USD pair this week is positive, with the pound likely to continue its upward momentum against the dollar. However, traders should remain cautious and closely monitor key economic events and data releases that could impact the currency pair.
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