The Us Dollar Strengthens, And The Pound Slips Before The Fed’s Decision

Here is the GBPUSD Fundamental Analysis for 28th October after the US Dollar gets bullish against the Pound because of the Fed’s decision.

October 28, 2019, | AtoZ MarketsThe US dollar strengthened on Monday in Asia, pending the outcome of the US Federal Reserve meeting scheduled later this week.

The US dollar index following the greenback versus a basket of other currencies increased by 0.1% to 97.653 at 23.15 ET (03.15 GMT).

The Fed’s monetary policy decision is expected on Wednesday. And the central bank is widely anticipated for its third rate cut this year. Traders are eager to know whether it will be the end of the easing cycle, or whether further cuts are expected.

GBPUSD Fundamental Analysis – 28 October 

The Fed’s interest rate decision is expected just hours after a third-quarter US GDP report. That should show the economy grew 1.7% over the three months finished in September. And it is slowing from 2% in the second quarter.

The Bank of Japan is expected to declare its latest political decision on Thursday. The central bank is awaited to keep monetary policy on hold, but the decision is seen as a tough call.

GBP / USD slipped 0.1% to 1.2813, while the EUR / USD pair was little changed at 1.1080.

The EU would decide this week to postpone or delay the departure of Britain for January 31.

Zach Pandl is co-head of Goldman Sachs’ foreign exchange rates and emerging markets strategy. He told in an interview on Friday that he expects the yuan to show some weakness in the near term against the US dollar.

Pandl said that they are forecasting a rebound to 7.20 against the dollar. So trading towards the weak end of the band almost the fix”.

This move will probably take place next month, according to our best estimates, he added.

Chinese policymakers use the yuan as a means of stabilizing the economy, really on and off since 2015, since the currency reforms, ​​Pandl said.

“I do not see any reason for this trend to change immediately. That is still logical, given the other constraints on monetary policy. This tries to make the exchange rate a measure of support for domestic growth,” he added.

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