The GBP/USD has dropped sharply on Friday
October 29, 2021
The GBP/USD has dropped sharply on Friday, weighed by broad-based US dollar strength in a combination of a moderate risk aversion, and higher expectations of a hawkish turn by the Federal Reserve next week.
US macroeconomic data might have encouraged investors to close US dollar shorts, especially after the Core Personal Consumption Expenditures, the Fed’s preferred inflation gauge, accelerated 3,6% year-on-year in September. These figures reaffirm the idea that the central bank will be forced to accelerate its monetary normalization plan, which has favored the USD.