The British pound tipped higher against the U.S. dollar for the second-day after finding intraday support ahead of the 50-Day moving average (1.6442) however, the GBP/USD may hold a narrow range ahead of the Bank of England interest rate decision as investors anticipate the central bank to hold the benchmark interest rate at the record-low of 0.50%.
Talking Points
· Japanese Yen: Leading Index Improves for Fourth Month in July
· Pound: Trade Deficit Remains Little Changed in July
· Euro: German Annualized CPI Holds Flat in August
· US Dollar: Fed’s Beige Book on Tap
The British pound tipped higher against the U.S. dollar for the second-day after finding intraday support ahead of the 50-Day moving average (1.6442) however, the GBP/USD may hold a narrow range ahead of the Bank of England interest rate decision as investors anticipate the central bank to hold the benchmark interest rate at the record-low of 0.50%. Credit Suisse overnight index swaps a 2% chance for a rate hike tomorrow, while investors anticipate the BoE to raise borrowing costs by more than 75bp over the next 12 months as the outlook
