Pound continues to trade downward because of uncertainty within the Bank of England's plan regarding interest rates. Even the growth of euro did not help it rally yesterday. In addition, more and more people are claiming that it is time for the central bank to pause the rate increases in order to evaluate its effect. The data on house prices is coming today, and the rate at which it is growing is expected to slow from 11.0% to 9.4%. Given the importance and weight of the real estate market, this may indicate the possibility that inflation is already easing.
House Price Index (UK):
Euro, on the other hand, climbed upwards yesterday after reports revealed that inflation accelerated from 8.9% to 9.1%. There is no doubt that the ECB will raise rates by 75 basis points during its monetary policy meeting in October.
Inflation (Europe):
In the US, everything became clear after Fed Chairman Jerome Powell said his speech. There were no noticeable impacts as of writing, and it is likely that macroeconomic statistics will not be too far from the forecasts.
EUR/USD is moving away from parity, allowing the possibility of accumulation. This means that strong price jumps may occur in the market.
GBP/USD continues to trade downwards, most likely because traders are aiming at the 2020 local low, where a full-size correction is possible.