Dollar Strengthens due to PMI Data

Here is the GBPUSD Fundamental Analysis for 25th October after the US Dollar gets bullish against the Pound because of PMI data.

October 25, 2019, | AtoZ MarketsThe pound slipped against the US dollar on Friday in Asia. British Prime Minister Boris Johnson said UK lawmakers should support a general election early December 12 to have more time to consider the Brexit deal, creating more uncertainty about the country’s departure process.

GBPUSD fell 0.1% to 1.2842 at 12:05 AM ET (04:05 GMT).

EU officials will meet later in the day to decide how long they will extend the deadline for Britain to leave the bloc.

Meanwhile, the US dollar index following the greenback versus a basket of other currencies rose 0.1% to 97.470. The greenback was boosted after the Markit Purchasing Managers Index was higher than expected at 51.5 compared to 51.1 in the previous month.

GBPUSD Fundamental Analysis – 25 October 

The data has raised hopes that the Federal Reserve will reduce its borrowing costs for the third time this year even more. Central bank policymakers will meet next week. US President Donald Trump has lobbied for further interest rate cuts, saying other central banks around the world have seen interest rates fall.

The Federal Reserve is failing in its functions if it does not lower the rate and, ideally, if it does not stimulate it, take a look around the world at our competitors. Germany and other countries are getting paid to borrow money. The Fed has been far too fast to raise, and much too slow to cut – tweeted the president.

ECB President Mario Draghi has declined criticism of his negative interest rate policy. And he also rejected his insistence on resuming outright purchases of government bonds starting next month. Improving the economy has more than offset the adverse side effects on the financial system, Draghi said at his regular press conference.

He added that he was not unduly concerned by the dissent over September’s multifaceted package of easing measures. He also said that all critical economic data from the euro area over the past month had justified these measures. He has taken it into account in the ongoing debate and discussions, said Draghi.

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