Why I'm Bullish on GBPUSD:
Current Interest rates are in favour of the GBP. A stronger rate on the GBP compared to USD allows for price to move higher.
GBP Interest Rate Adjusted for Inflation - 3.25%
USD Interest Rate Adjusted for Inflation - 2.50%
GBPUSD is also fundamentally strong as recent US inflation slowing signals a rate cut by the Federal Reserve next month. A rate cut by the Fed will weaken the USD. Additionally, the Bank of England is "unlikely" to cut rates next month. As a result the GBP is outperforming against the major FX pairs.
Current Interest rates are in favour of the GBP. A stronger rate on the GBP compared to USD allows for price to move higher.
GBP Interest Rate Adjusted for Inflation - 3.25%
USD Interest Rate Adjusted for Inflation - 2.50%
GBPUSD is also fundamentally strong as recent US inflation slowing signals a rate cut by the Federal Reserve next month. A rate cut by the Fed will weaken the USD. Additionally, the Bank of England is "unlikely" to cut rates next month. As a result the GBP is outperforming against the major FX pairs.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.