A Bleak Future Ahead for GBP/USD – Upcoming Inflation Report to Cause Further Decline
Published on: 11/18/19 9:54 AM
The GBP/USD pair has been on a downward trend for the better part of the year. At the moment, the pair is in a tag of war as the UK tries to get past the Brexit deadlock. The Pound is recovering after it took a deep plunge on the 7th, but uncertainty still persists. However, analysts expect the pair to stumble further down due to the upcoming release of the UK inflation report. Forex broker comparison service FXBrokerFeed brings you news, and trends in the FX broker market, featuring an unstable and declining GBP/USD.
Low Inflation Projections
The UK is set to release this month’s Consumer Price Index (CPI) in the coming weeks. Economists and analysts have voiced low expectations and forecasted a drop to 1.6%, down from 1.7% last month. This seems to be the trend considering that the CPI value drop and fell below expectations over the past two months.
If the decelerated forecast is true, the GBP/USD
is expected to take yet another hit that will cause it to stumble further. It is almost certain that the pair’s bearish trend will persist considering that two other major publications have fallen below expectations.
First, the labor market showed a manageable jobless rate at 3.8%, but it also revealed that the number of employed has dropped by about 52,000. The report also revealed that wage growth has slowed from about 3.8% last year to about 3.6% this year. Second, it has been revealed that the UK Gross Domestic Product growth rate has decelerated by about 1% per year. This is in spite of the GDP having generally risen by 0.3%.
In addition to the bleak CPI report, there is also the matter of the ongoing political uncertainty in the UK owing to the contentious Brexit deal. The General Elections are due to take place soon, and this is expected to make the Pound even more wobbly than it already is.
Today’s traders need a dependable way to navigate through the ever-changing world of Forex trading. FXBrokerFeed brings to you relevant information about FX brokers and currency pairs 24/7, and is an essential tool that will help improve your trading performance. Start your 30-day free trial today!