26/07/2023
The GBPUSD currency pair could be poised for an exciting week as the US Federal Reserve delivers its interest rate decision on Wednesday, with the PCE Price Index following on Friday. As these events could give traders an insight into the interest rate path as we advance, it could be critical for the directional trend of the currency pair.
On Monday, both economies showed a decline in private-sector activity. The US Composite PMI came in at 52, down from the prior 53.2, as its Manufacturing PMI remained in the contractionary territory at 49, exceeding the 46.2 consensus. At the same time, Services PMI contracted more than expected, from 54.4 to 52.4. In the UK, Services PMI contracted from 53.7 to 51.5, missing the 53 consensus to the downside, while its Manufacturing PMI slumped from 46.5 to 45. As a result, its Composite PMI fell from 52.8 to 50.7, missing the 52.4 consensus. With both economies showing a decline in business activity, both individual currencies were under pressure heading into the interest rate decision. Still, an interesting technical setup could open some lucrative opportunities.
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