The Pound Sterling (GBP) has gained value against the US Dollar (USD), supported by stronger-than-expected UK Retail Sales data for August. The data suggests that the Bank of England (BoE) may maintain its current interest rate stance.
Fed Monetary Policy
The Federal Reserve (Fed) cut interest rates by 50 basis points (bps), which was largely expected by markets. However, the Fed’s economic projections and comments from policymakers indicate a potential for further rate cuts.
Economic Data
The US Retail Sales data for August came in stronger than expected, indicating continued consumer spending. The BoE’s decision to maintain interest rates was influenced by the persistent inflation pressures.
Technical Analysis
The GBP/USD pair has broken above the 20-day Exponential Moving Average (EMA), indicating a bullish trend. The 14-day Relative Strength Index (RSI) is above 60.00, suggesting strong bullish momentum.
