04 Nov 2024

target:-1.31000
stoploss;-1.28365
buyingrange;-1.2900

GBP/USD rises to approximately 1.2970 during the early Asian session on Monday, reflecting an increase of 0.40% for the day.

The USD continues to face selling pressure due to disappointing US non-farm payroll data and uncertainty surrounding the upcoming US

presidential election. Additionally, the Bank of England is anticipated to reduce the interest rate by 25 basis points to 4.75%.

The GBP/USD pair rises to approximately 1.2970 during the Asian trading session on Monday, influenced by a weaker US Dollar. The USD continues to experience selling pressure following disappointing Nonfarm Payrolls (NFP) data for October, which lends support to this major currency pair.

Following a 50 basis points (bps) rate cut in September that initiated the easing cycle, the US Federal Reserve (Fed) is expected to implement a further 25 bps reduction in its policy rate during the upcoming November meeting. Market participants are pricing in this scenario with an estimated 97% likelihood. The Greenback is declining as traders prepare for the US presidential election and the Fed's interest rate decision scheduled for this week.

Analysts predict that Donald Trump's policies regarding immigration, tax reductions, and tariffs may exert upward pressure on inflation, treasury bond yields, and the USD, while Kamala Harris is viewed as a candidate representing continuity. Chris Weston, an analyst at broker Pepperstone, remarked, "It is widely believed that a Trump victory would be beneficial for the USD, although many consider this possibility to be already factored into the market."

Conversely, the Bank of England (BoE) is expected to announce a reduction in interest rates on Thursday, despite predictions that Labour’s budget could result in increased inflation in the UK next year. Money markets seem confident that the BoE will proceed with a second 25 bps cut this year, bringing the policy rate down to 4.75%.