- GBP shrugged off inflation declining to a 5 year low in August but beating forecasts.
- GBP/USD looks to the Federal Reserve’s monetary policy decisions and the Bank of England’s meeting on Thursday.to drive direction
- Boris Johnson is trying to soothe concerns over the Internal Market Bill which undermines part of the Brexit divorce treaty.
GBP/USD IN FAMILIAR RANGE PRE FED, BOE
GBP/USD trades in a tight range ahead of the FOMC rate decisions due 1900 BST. The central bank’s decisions will determine the pairs’ next move in the short term although it could remain rangebound until the BoE rate decision on Thursday. No change to interest rates is expected from either bank so attention will be firmly on their statements and whether they are more dovish or hawkish than expected.
UK inflation data was shrugged off inflation, as measured by consumer price index (CPI), declined to +0.2% YoY in August. This is a five year low and down from 1.0% in July, although above the zero pencilled in by analysts.