Watching the GBP/USD pair, we always observe increased volatility, so with what is that connected with and what can we expect at the moment from a trend that may change every week?
The dollar continues to strengthen and is trying to finish the week on a positive note as the US passed a bill to extend the temporary financing of the government's work until December 22, which increased investors' expectations regarding the adoption of new tax rules. The bill will now be sent for signature to the President of the United States - Donald Trump.
Today is expected to yield a number of useful data from the University of Michigan, which also has to show the level of consumer inflation.
One of the most important drivers for the dollar today is the data output by the level of employment; according to preliminary forecasts for November the unemployment rate will be 4.1%. At the moment the dollar index shows a positive trend and is at 94.00, so today we hope to see its continued growth.
Continuing to follow the political tendencies, the British pound began a new upward wave on the back of the improved forecasts of Brexit conditions, in particular, regarding the situation of Northern Ireland's border with the Republic of Ireland.
Furthermore, published data on the UK economy showed an improvement in the economic climate and thus the rate of inflation exceeded the expected level and amounted to 2.9% instead of 2.5%. Also higher than projected were the volume of production in the manufacturing industry and the trade balance for October.
At this point everyone expects the final resolution of the British conditions for their exit from the EU bloc and the signing of new trade agreements, which will undoubtedly push the British currency toward growth and the upward movement of our pair.
