(VIANEWS) – On Wednesday morning, the GBP/USD exchange rate moved in a sideways direction as traders waited to see Federal Reserve minutes.
The latest OECD report about the British economy was also well received by the pair. FOMC minutes aheadThe OECD released its carefully watched economic outlook Tuesday. According to the report, the British economy would be among the most underperforming in the G20 following Russia.
The report predicts that the British economy will shrink by 0.4% by 2023, and then grow by only 0.2% by 2024. Rishi Sunak’s administration capped household energy bills at PS2,500 for the period April through April.
The OECD claims that stimulus will result in higher interest rates, and more government debt. This statement was made on the same day as the UK released its latest data regarding public borrowing. The fourth largest October borrowing was PS13.5billion, which is net borrowing. However, the number was lower than what is usually expected at PS22 billion.
In October, the government spent PS76.5 million and received PS51.7 billion. This is an indication that inflation is rising. Inflation rose to 11.1% last month, which is the highest level in more than 40 years.
There is a risk that rate increases in the UK during stagflation could make matters worse. The next important data will be preliminary PMI numbers for the UK and US. Economists in the UK expect that data will show that manufacturing PMI fell to 45.7, while services PMI fell to 48. Analysts expect the US manufacturing PMI to fall to 50.
GBP/USD (GBPUSD) has been up by 1.5317% for the last session’s close. At 19:19 EST on Wednesday, 23 November, GBP/USD (GBPUSD) is $1.21.
GBP/USD (GBPUSD) Range
Concerning GBP/USD’s daily highs and lows, it’s 2.089% up from its trailing 24 hours low of $1.18 and 1.412% up from its trailing 24 hours high of $1.19.
GBP/USD’s yearly highs and lows, it’s 16.293% up from its 52-week low and 12.212% down from its 52-week high.
GBP/USD’s last week, last month’s, and last quarter’s current intraday variation average was 0.29%, 0.29%, and 0.89%, respectively.
GBP/USD’s highest amplitude of average volatility was 0.52% (last week), 0.96% (last month), and 0.89% (last quarter), respectively.
Forex Price Classification
According to the stochastic oscillator, a useful indicator of overbought and oversold conditions, GBP/USD’s Forex is considered to be overbought (>=80).
Previous days news about GBP/USD (GBPUSD)
- Gbp/usd advances steadily on soft US dollar as fed officials hints 50 bps in December. According to FXStreet on Tuesday, 22 November, “Nevertheless, a gloomy economic outlook in the UK favors further GBP/USD downside. “, “At the time of writing, the GBP/USD is trading at 1.1872, above its opening price by 0.40%.”
- Gbp/usd ignores brexit woes to regain 1.1850 as US dollar retreats. According to FXStreet on Tuesday, 22 November, “Moving ahead, a lack of major data/events could allow GBP/USD to defend the latest rebound. “, “A one-week-old descending trend line, around 1.1890 by the press time, restricts immediate GBP/USD recovery ahead of the key resistance line from mid-June, close to the 1.2000 threshold at the latest. “
- Gbp/usd rallies above 1.2050, prints a new three-month high. According to FXStreet on Wednesday, 23 November, “At the time of writing, the GBP/USD is trading at 1.2051 after hitting a daily low of 1.1872.”, “That said, the GBP/USD jumped from around 1.1950 to its new three-month high at 1.2080, a level last seen on August 17, 2022. “
- Gbp/usd: ongoing move could persist towards projections near 1.2070 – socgen. According to FXStreet on Tuesday, 22 November, “Economists at Société Générale note that the GBP/USD pair could extend its race higher towards 1.2070.”
- Gbp/usd aims to recapture 1.1900 as market mood soars ahead of FOMC minutes. According to FXStreet on Tuesday, 22 November, “The GBP/USD pair is aiming to recapture the immediate hurdle of 1.1900 sooner as the market mood has turned extremely cheerful. “
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