UK data warrants a rate hike, but will US macro numbers support the Fed rate view in December?. Watch today’s video with Ryan Littlestone, Director and Trading Analyst at ForexLive.com, as he speaks on the rate hike scenario in US and UK, the nonfarm payrolls release, and why GBP/USD remains a range play.
GBP/USD: Sell into strength
GBP/USD saw another test of 1.55 yesterday, and breaking above this will lead to further upside in the pair, notes Littlestone. He further adds that the cross remains a range-trade and suggests selling into strength.
UK nudging closer to a rate hike?
Littlestone believes that the UK inflation numbers will be key to determine the timing of a rate hike. He expresses optimism over the recent macro data, saying that the numbers warrant a rate hike.
Fed rates: 80% chance of a December hike
Most Fed members have expressed optimism on rates, and hence Littlestone believes that the probability of a December Fed rate hike is likely, but will need support from the macro data out ahead in the US.
On the jobs data ahead, he sees a higher USD and a lower GBP/USD on a strong wages number.