The GBP\/USD is forecasted to trade within a range of 1.3065 to 1.3185, with limited prospects of declining below 1.3085. The broad-based improvement in the risk complex is impacting the US Dollar, which in turn favours the GBP\/USD pair’s performance.<\/p>\n
In other markets, gold is trading firmly around $4,200 as the US Dollar weakens following an anticipated Fed rate cut. Bitcoin remains steady at around $102,800, reflecting market indecision, while Ripple trades slightly below $2.50 amid positive cryptocurrency sentiment.<\/p>\n
The Pound is facing significant pressure following the release of poor economic data for the United Kingdom. The latest figures show third-quarter GDP growth was almost flat at just 0.1%, while the unemployment rate has risen to 5%. We have not seen unemployment this high since the economic recovery period back in early 2021, signaling that the labour market is weakening.<\/p>\n
This slowdown places UK policymakers in a tough spot, as inflation remains a concern. With the latest Office for National Statistics data showing the UK’s Consumer Price Index (CPI) is still hovering at 3.4%, well above the 2% target, the Bank of England has little room to cut interest rates to support the economy. This policy conflict is likely to keep the Pound from making any strong upward moves.<\/p>\n
For the coming weeks, we see GBP\/USD trading within a confined range, likely between 1.3065 and 1.3185. A viable strategy would be to sell out-of-the-money call options with strike prices above 1.3200. This approach aims to collect premium from the expectation that the currency’s upside potential is limited by the gloomy economic outlook.<\/p>\n
The balance of risks is tilted to the downside, especially with the US Federal Reserve still signaling that American inflation at 3% remains too high for comfort. Traders looking for a directional move could consider buying GBP\/USD put options, which would profit from a drop below the 1.3065 support level. This provides a way to capitalize on any further negative economic surprises from the UK.<\/p>\n
We must pay close attention to the upcoming UK Budget announcement from Chancellor Rachel Reeves, as it represents a major potential volatility event. Implied volatility on GBP options will likely increase as we approach the date, making strategies like a long straddle potentially profitable. This would allow a trader to benefit from a large price swing in either direction following the fiscal statement.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Pound pressured by weak UK GDP, rising unemployment; GBP\/USD supported by softer USD amid risk appetite.<\/p>\n","protected":false},"author":5,"featured_media":17037,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-34823","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts\/34823","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/comments?post=34823"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts\/34823\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/media\/17037"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/media?parent=34823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/categories?post=34823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/tags?post=34823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}