Our expert team provide detailed analysis and key insights on the latest movements and events that affect market prices.
Another week ends with more disappointment for pound lovers. In this edition of the week ahead, we take a closer look at the next driving factors for GBPUSD.
It’s a light economic calendar in the US next week, with US inflation being the major macro data. The year-on-year figure for September is expected to have accelerated to 1.5% from 1.1%, with core inflation, ex food and energy, stable at 2.3%. A solid inflation read would of course give a further hand to the Fed hawks. Yet the US dollar will certainly be facing political risks, and temporary unwinds walking into the presidential election on November 8th.
Given the slow data flow in the US, traders’ attention will shift to the Eurozone, with the ECB meeting on Thursday 20th. The ECB is expected to hold fire at this meeting, but the accompanying statement will be the main focus, hence the EURUSD will be one to watch.
Finally, the minor recovery we’ve seen in Gold has failed to generate enough momentum and $1275 remains the key mid-term resistance. LCG shares a technical outlook on gold.