Pound Sterling struggles ahead of Fed-BoE policy
The Pound Sterling (GBP) trades with caution against its peers ahead of the United Kingdom (UK) labor market data for the three months ending January and the Bank of England’s (BoE) monetary policy decision, scheduled for Thursday. Investors will pay close attention to the Average Earnings data, a key measure of wage growth that has contributed significantly to the high inflation in the services sector.
UK’s leading global provider of people data, analytics, and insight firm Brightmine showed on Tuesday that the pay growth has slowed as business owners are cautious before the implementation of an increase in payroll taxes from April. UK Chancellor of the Exchequer Rachel Reeves announced an increase in employers’ contribution to National Insurance (NI) from 13.8% to 15% in the Autumn Budget. Read more...
GBP/USD Forecast: Pound Sterling loses bullish momentum, eyes on Fed
After posting strong gains on Monday, GBP/USD continued to edge higher on Tuesday and touched its strongest level since early November above 1.3000. The pair stays on the back foot and trades below 1.3000 in the European session on Wednesday.
The cautious market stance helps the US Dollar (USD) stay resilient against its rivals midweek and causes GBP/USD to stretch lower. In the late American session, the Federal Reserve (Fed) will announce monetary policy decisions and publish the revised Summary of Economic Projections (SEP), the so-called dot plot. Read more...
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