Event to watch today:
20.02 15:30 EET. USD - Gross Domestic Product
GBPUSD:
GBP/USD is holding around 1.344–1.347, but fundamentally the pound looks weaker than the dollar. The main reason is expectations that the Bank of England may continue easing credit conditions if inflation and the labor market keep cooling. For the currency, this means lower appeal of UK assets and more cautious demand for the pound.
At the same time, the dollar is supported by expectations that the Fed will act carefully and will not hurry to change rates. In such conditions, demand for the dollar typically strengthens, especially if investors see risks to the global economy or simply reduce exposure to riskier positions. As a result, the pound struggles to maintain gains even when local news is positive.
In the coming months, the pair’s direction will depend on two things: how convincingly inflation cools in the UK and how quickly the market starts pricing US rate cuts again. For now, the balance still favors the dollar, and GBP/USD remains prone to moving lower, especially on days of key macro releases and central-bank communication.
Trading recommendation: SELL 1.34450, SL 1.34750, TP 1.33550
20.02 15:30 EET. USD - Gross Domestic Product
GBPUSD:
GBP/USD is holding around 1.344–1.347, but fundamentally the pound looks weaker than the dollar. The main reason is expectations that the Bank of England may continue easing credit conditions if inflation and the labor market keep cooling. For the currency, this means lower appeal of UK assets and more cautious demand for the pound.
At the same time, the dollar is supported by expectations that the Fed will act carefully and will not hurry to change rates. In such conditions, demand for the dollar typically strengthens, especially if investors see risks to the global economy or simply reduce exposure to riskier positions. As a result, the pound struggles to maintain gains even when local news is positive.
In the coming months, the pair’s direction will depend on two things: how convincingly inflation cools in the UK and how quickly the market starts pricing US rate cuts again. For now, the balance still favors the dollar, and GBP/USD remains prone to moving lower, especially on days of key macro releases and central-bank communication.
Trading recommendation: SELL 1.34450, SL 1.34750, TP 1.33550
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More analytical information and promotions on FreshForex website cutt.ly/LrP6j9qD
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.