Forex Market: GBP/USD daily trading outlook

Written by Miroslav Marinov

Miroslav Marinov, a financial news editor at TradingPedia, is engaged with observing and reporting on the tendencies in the Foreign Exchange Market, as currently his focus is set on the major currencies of eight developed nations worldwide.

, | Updated: October 30, 2024

Friday’s trade saw GBP/USD within the range of 1.4481-1.4615. The pair closed at 1.4501, tumbling 0.76% on a daily basis. It has been the 18th drop in the past 41 trading days and also the sharpest one since May 3rd, when the pair lost 0.95%. In weekly terms, GBP/USD added 0.97% to its value during the past week. It has been the 11th gain in the past 20 weeks and also the steepest one since the week ended on May 1st, when it surged 1.46%. The major pair has pared its loss to 0.51% so far during the current month, following two consecutive months of advance.

At 6:26 GMT today GBP/USD was inching down 0.05% on the day to trade at 1.4587. The pair touched a daily high at 1.4548 at 8:51 GMT and a daily low at 1.4483 during early European trade.

On Monday GBP/USD trading may be influenced by the following macroeconomic reports and other events as listed below.

Fundamentals

United States

Manufacturing PMI by Markit – preliminary reading

Manufacturing activity in the United States probably was little changed in May, with the corresponding preliminary Purchasing Managers’ Index coming in at a reading of 51.0, according to market expectations, up from a final seasonally adjusted reading of 50.8 in April. The latter has been the lowest PMI level in more than 3 years.

Values above the key level of 50.0 indicate predominant optimism (expanding activity) among survey respondents. In case the flash manufacturing PMI showed a worse-than-anticipated performance in May, this would have a moderate bearish effect on the US dollar. The preliminary PMI reading by Markit Economics is due out at 13:45 GMT.

Fed speakers

At 10:15 GMT today the Fed President for St. Louis, James Bullard, is expected to take a statement, followed by the Fed President for San Francisco and also a FOMC member, John Williams at 12:00 GMT. Additionally, at 22:30 GMT the Federal Reserve President for Philadelphia and also a FOMC member, Patrick Harker is to speak. Their remarks will be closely watched by market players for hints over the Banks monetary policy stance in the upcoming months and, thus, may lead to moderate volatility of the currency pairs containing the US dollar.