Exchange Rate: GBP/USD Forex Trading Forecast for Oct 7
Having fallen in value last Friday, on Monday the GBP rose against the USD throughout the day. From a low of 1.5966 by the end of the day it had risen above the 1.6036 level.
The USD had a quiet day as investors consolidated gains after a strong jobs report last Friday fuelled expectations that the Federal Reserve will raise interest rates sooner than expected. The GBP is still under pressure following last week’s disappointing data. Data released on Friday showed that the UK services sector growth eased slightly in September which suggests that the economic recovery may be slowing down.
The next few days could follow a similar pattern with the USD remaining fairly steady and the GBP making minor gains. When the details of the Federal Reserve’s latest meeting are published later in the week, it would not be surprising to see the USD make further gains.