- GBP/USD edges lower at the start of a new week amid broad-based USD strength.
- Expectations for a less aggressive Fed policy easing continue to underpin the USD.
- Bets for more BoE rate cuts weigh on the GBP and exert pressure on the major.
The GBP/USD pair kicks off the new week on a softer note and trades around the 1.2960-1.2955 region, just below the 100-day Simple Moving Average (SMA) during the Asian session. Spot prices, however, remain within striking distance of the lowest level since August 16, near the 1.2900 mark touched last week and seem vulnerable to prolonging a one-month-old downtrend amid a bullish US Dollar (USD).
The USD Index (DXY), which tracks the Greenback against a basket of currencies, stands firm near a three-month peak and looks to build on its gains registered over the past four weeks amid bets for a less aggressive easing by the Federal Reserve (Fed). In fact, market participants seem convinced that the US central bank will lower borrowing costs by 25 basis points in November as the incoming US macro data continue to suggest that the economy remains on strong footing.
The US Census Bureau reported on Friday that Durable Goods Orders in the US decreased by 0.8% in September, slightly better than expectation for a decline of 1%. Additional details of the report showed that new orders excluding transportation increased 0.4% during the reported month. Furthermore, the University of Michigan's Consumer Sentiment Index reached a six-month high of 70.5 in October, better than both the preliminary result and the previous month's reading.
The data validates the view that the Fed will proceed with modest rate cuts over the year, which, in turn, triggers a fresh leg up in the US Treasury bond yields and continues to underpin the USD. The British Pound (GBP), on the other hand, is undermined by rising bets for more interest rate cuts by the Bank of England (BoE) in November and December, bolstered by a fall in the UK Consumer Price Index to the lowest level since April 2021 and below the central bank's 2% target.
The aforementioned fundamental backdrop suggests that the path of least resistance for the GBP/USD pair is to the downside. Even from a technical perspective, the recent repeated failures to near the 1.3000 psychological mark support prospects for an extension of the downfall from the 1.3435 area, or the highest level since February 2022 touched last month.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.01% | 0.02% | -0.02% | 0.03% | 0.00% | 0.10% | 0.10% | |
| EUR | 0.01% | 0.14% | -0.08% | 0.04% | 0.10% | 0.10% | 0.14% | |
| GBP | -0.02% | -0.14% | 0.60% | 0.02% | 0.01% | 0.04% | 0.24% | |
| JPY | 0.02% | 0.08% | -0.60% | 0.12% | -0.60% | -0.62% | -0.34% | |
| CAD | -0.03% | -0.04% | -0.02% | -0.12% | -0.07% | -0.01% | 0.10% | |
| AUD | -0.01% | -0.10% | -0.01% | 0.60% | 0.07% | -0.03% | 0.04% | |
| NZD | -0.10% | -0.10% | -0.04% | 0.62% | 0.00% | 0.03% | 0.00% | |
| CHF | -0.10% | -0.14% | -0.24% | 0.34% | -0.10% | -0.04% | -0.00% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Next upside target comes at 0.6550
AUD/USD managed well to shrug off the marked advance in the Greenback as well as geopolitical tensions, regaining the area above the 0.6500 hurdle ahead of preliminary PMIs in Australia.
EUR/USD: Further losses now look at 1.0450
Further strength in the US Dollar kept the price action in the risk-associated assets depressed, sending EUR/USD back to the 1.0460 region for the first time since early October 2023 prior to key releases in the real economy.
Gold faces extra upside near term
Gold extends its bullish momentum further above $2,660 on Thursday. XAU/USD rises for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. Markets await comments from Fed policymakers.
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally
Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.