GBP/USD Pairing Forecast to be Bearish
The last week saw the GBP/USD currency pairing move from a high of 1.6736 to a low of 1.6567 as the GBP weakened and the USD strengthened. The Pound hit its lowest point against the Dollar since April 2012 as UK inflation slowed more than expected in July and confusing remarks from officials at the Bank of England put the economy under pressure.There isn’t much economic news forecast from England over the coming week so any fluctuations in the pairing are likely to be the result of news from the US. Economic reports are due to be released from the US Markit Composite/Services PMI, New Home Sales numbers, US Durable Goods Orders figures, the House Price Index the Consumer Confidence gauge and Personal Consumption numbers.
It is thought that the US Durable Goods Orders report will show that there was a 7.6% increase in July.
If this proves to be the case, and the data published supports the case for a sooner increase in interest rates than expected then the coming days could see the Dollar reach new highs against the Pound.