GBP/USD to face further downward pressure in the coming weeks .

GBP/USD to head lower in the coming weeks.Further tough fiscal decisions will be required.“A series of fiscal policy U-turns, alongside temporary support for the UK government bond (known as ‘gilt’) market from the Bank of England (BoE), have provided relief for the GBP for now. However, with the UK’s fiscal, monetary and political challenges, the GBP is likely to face further downward pressure in the coming weeks.”

“For the British government, further tough fiscal decisions will be required, as debt-to-GDP ratios are set to rise and the fiscal deficit could land at about 6% of GDP.”“For the 3 November BoE meeting, the GBP could suffer from a BoE tone that suggests the economic outlook may be even weaker than previously expected and that the market is too hawkish on rate hikes.”

EUR/USD recovers modestly after US data, trades above 0.9950

EUR/USD climbed above 0.9950 in the early American session and managed to erase its daily losses. After the data from the US showed that the Core PCE inflation rose at a slightly slower pace than expected in September, the dollar lost strength and helped the pair edge higher.

EUR/USD News 

GBP/USD rebounds to 1.1550 area after US PCE data

GBP/USD has recovered to the 1.1550 area in the second half of the day on Friday as the dollar lost interest on the softer-than-expected Core PCE inflation data for September. Investors await UoM Consumer Sentiment Survey and Pending Home Sales data.

GBP/USD News 

Gold struggles to gain traction, stays below $1,650

Gold is having a difficult time staging a rebound in the second half of the day and trades deep in negative territory below $1,650. The benchmark 10-year US Treasury bond yield is up more than 2% on the day above 4%, forcing XAU/USD to stay under bearish pressure.

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