The GBP/USD pair saw a rise in the pound’s value last week after a disappointing Non-Farm Payrolls (NFP) report from the US. The report showed that the US economy added fewer jobs than expected in the month of August, causing the dollar to weaken against major currencies, including the pound.
As a result, the GBP/USD pair climbed to a high of 1.3890 before settling around the 1.3850 mark by the end of the week. This marked a significant increase from the previous week’s close of 1.3750.
Looking ahead, the focus for traders will now shift to the upcoming Bank of England (BoE) meeting scheduled for this week. The central bank is expected to announce its latest monetary policy decision, including any changes to interest rates or asset purchases.
Market analysts are closely watching for any hints of a potential rate hike by the BoE, as inflation in the UK has been rising steadily in recent months. A rate hike could further boost the pound’s value against the dollar, pushing the GBP/USD pair even higher.
However, some analysts believe that the BoE may hold off on raising rates for now, as concerns about the impact of the Delta variant of COVID-19 on the UK economy persist. In this case, the pound could face some downward pressure against the dollar.
In addition to the BoE meeting, traders will also be keeping an eye on other economic data releases scheduled for this week, including UK GDP figures and inflation data. Any surprises in these reports could also impact the GBP/USD pair’s movement.
Overall, the outlook for the GBP/USD pair remains uncertain as traders await the outcome of the BoE meeting and other key economic data releases. Volatility is expected to remain high in the coming days, so traders should be prepared for potential swings in the currency pair.
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