The Pound Sterling (GBP) gained strength during Tuesday's New York session due to uncertainty about the timing of the Bank of England's (BoE) interest rate cuts. Markets anticipate the BoE will announce a rate cut in August, the first since the Covid-19 pandemic, as policymakers signal a readiness to ease their restrictive stance.
BoE Governor Andrew Bailey mentioned that the decision to maintain rates at 5.25% was "finely balanced," with seven officials voting to keep rates steady and two favoring a cut. Although inflation has returned to the BoE's 2% target, wage inflation concerns remain.
The GBP/USD pair has stalled around 1.2700 after recovering from a five-week low of 1.2620. The price action shows a ceiling near the EMA 200, highlighted by a Dark Cloud candlestick pattern and a shooting star formation. The pair is struggling to stay above the cloud after a breakout, with key support at the bottom of the cloud. If prices fall below the cloud, a bearish continuation is likely.
| Time | Currency | Event | Impact | Actual | Forecast | Previous |
|---|---|---|---|---|---|---|
| 07:30 | AUD | Westpac Consumer Confidence Index | Medium | 83.6 | 82 | 82.2 |
| 07:30 | AUD | Westpac Consumer Confidence Change | High | 1.7% | -0.1% | -0.3% |
| 14:00 | EUR | GDP Growth Rate QoQ Final | Medium | 0.8% | 0.7% | 0.7% |
| 14:00 | EUR | GDP Growth Rate YoY Final | Medium | 2.5% | 2.4% | 2.1% |
| 18:00 | USD | Fed Bowman Speech | Medium | |||
| 19:30 | CAD | Core Inflation Rate MoM | High | 0.6% | 0.2% | 0.2% |
| 19:30 | CAD | CPI Trimmed-Mean YoY | High | 2.9% | 2.8% | 2.9% |
| 19:30 | CAD | CPI Median YoY | High | 2.8% | 2.6% | 2.6% |
| 19:30 | CAD | Inflation Rate YoY | High | 2.9% | 2.6% | 2.7% |
| 19:30 | CAD | Inflation Rate MoM | High | 0.6% | 0.3% | 0.5% |
| 19:30 | CAD | Core Inflation Rate YoY | High | 1.8% | 1.6% | 1.6% |
| 20:00 | USD | Chicago Fed National Activity Index | Medium | 0.18 | -0.4 | -0.23 |
| 20:00 | USD | S&P/Case-Shiller Home Price YoY | Medium | 7.2% | 6.9% | 7.5% |
| 20:00 | USD | S&P/Case-Shiller Home Price MoM | Medium | 1.4% | 1.1% | 1.6% |
| 21:00 | USD | CB Consumer Confidence | High | 100.4 | 100 | 102 |
| 23:00 | USD | Fed Cook Speech | Medium |
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