S&P 500 holds near highs, but Fed cuts could spark short-term volatility before medium-term bullish momentum resumes.
GBP/USD is pressing against resistance at 1.3600, where momentum is slowing after a solid uptrend. The pair has work to do if bulls want to push higher, with this level acting as the first real hurdle.
On the fundamental side, UK GDP showed no growth in July, cooling off from June’s 0.4% rise. Manufacturing dropped 1.3% and dragged on momentum, though the series remains volatile and unlikely to sway the BoE much.
Heading into next week’s BoE meeting, the focus isn’t on rates — most expect them to stay on hold at 4% — but on how the Bank handles quantitative tightening. They’ve already reduced £100 billion in gilts, and markets think they’ll slow that pace. If they don’t, gilt yields could climb and pressure the pound. In short: risks for GBP are more tied to bond markets than the rate path.
S&P 500 holds near highs, but Fed cuts could spark short-term volatility before medium-term bullish momentum resumes.
DXY holds near support as traders await FOMC, with three cuts priced and data setting the next move.
Sterling stalls at resistance as soft UK growth data shifts attention to next week’s BoE meeting and balance sheet risks.
