GBP/USD may face challenges as traders adopt caution ahead of US Consumer Price Index data due on Wednesday. CME FedWatch Tool suggests an 85.8% chance of Fed rate reductions by 25 basis points in December. The upcoming Friday’s data is expected to indicate a rebound in the UK economy during October. The risk-sensitive pair could face challenges as the US Dollar continues to gain ground due to market caution ahead of the US Consumer Price Index data scheduled to be released on Wednesday.
Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders , and EUR/GBP . The Pound Sterling is issued by the Bank of England . How do the decisions of the Bank of England impact on the Pound Sterling? The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England.