FXEM - EMPIRE MARKETS - Company New Article

The GBP/USD price is trading negatively heading towards testing 1.2360, and as we mentioned before, this level represents one of the keys to the next trend 1.2415, as the price needs to exceed one of them to determine its next destination more accurately.

• The US dollar declined due to increasing expectations of a rate cut by the US Federal Reserve.
• Awaiting the UK growth and inflation data that will affect the Bank of England’s monetary policy decisions.
• Technical factors as the price tries to hold above key support levels to maintain the upward momentum.

All eyes are on the Bank of England officials’ statements and US inflation data to know the next direction for the British pound.

EUR/USD rose to 1.03174, supported by several economic and political factors.

• The dollar weakened: weak US labor market data and rising expectations of a Fed rate cut supported the European currency.
• Positive economic data: improving investor confidence indicators in the Eurozone boosted demand for the currency.
• Geopolitical tensions: safe haven flows to the Euro due to global instability.

If the Euro succeeds in breaking 1.0330, the rise may extend towards 1.0350, while breaking 1.0300 may lead to a downside correction.

The focus now is on the statements of European Central Bank officials and US inflation data to determine the next direction.