The pound continued its downward momentum against the dollar following yesterday’s release of the FOMC minutes. The minutes showed that Fed officials were increasingly optimistic about the economy, which they predicted would reach their target of 2% later this year. As a result, the dollar went up against the major currency pairs.
Today, with no major economic data from the United States, traders are likely to focus on UK’s GDP numbers. At 0900 hours, the ONS will release the country’s GDP and business investment numbers. Traders expect the QoQ GDP growth to remain unchanged at 0.5%. They expect the annualized GDP growth to remain unchanged at 1.5%. They expect annualized business investment to grow to 2.4% while QoQ investments to remain unchanged at 0.5%.
The pair is currently trading at 1.3910, which is a 38.2% Fibonacci Retracement level. With the long-term SMA significantly in the outside area of the short-term MA, there may be a likelihood that the pair will continue its downward momentum.
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