09 November, 2018
GBP/USD continued to fall on Friday testing this morning its lowest rate in four days (1.30390). The dollar gained versus the British pound on Friday as the U.S. Federal Reserve kept interest rates steady at 2.25% but reaffirmed its monetary tightening stance, setting the stage for a rate hike in December. The Fed has raised its key policy rate three times this year, and the market expects another rate hike in December on the back of a robust U.S. economy, rising inflation and solid jobs growth. Sterling, on the other hand, has gained 2.3% against the dollar in November. The pound has benefited from growing investor expectations that Britain is close to reaching a deal with the European Union, less than five months before it is due to exit the bloc. Later this morning fresh GDP data for quarter three in the UK will be released. Investors will also pay attention to UK’s Manufacturing Production and Trade Balance data for September. Later this afternoon, investors could be expected to turn focus to PPI data for October in the US (13:30 GMT).