As U.S. growth and inflation data approached Thursday, sterling edged lower against the dollar, a market move FXStreet reported during early European trading in its latest currency update.
The U.S. Bureau of Economic Analysis (BEA) scheduled its advance estimate of third-quarter gross domestic product and its September Personal Income and Outlays report for 8:30 a.m. EDT (12:30 p.m. GMT). The monthly report includes the personal consumption expenditures price index.
In an update timestamped 09:17:58 GMT, FXStreet put the pound-dollar rate at $1.3312 and described sterling as weakening alongside a firmer dollar. Its preview cited estimates of 3.2% annualized GDP growth for July through September and 3.1% year-over-year core PCE inflation in September. Those estimates were reported by FXStreet.
The BEA’s latest available figures showed GDP growth of 2.2% in the second quarter and core PCE inflation of 3% in August. The scheduled September report would provide the next monthly inflation reading.
The Federal Reserve held its federal funds target range at 3.75%-4.00% Wednesday in a 10-2 vote. Federal Open Market Committee members Lisa D. Cook and Beth M. Hammack dissented in favor of a quarter-point increase. The Fed’s statement said inflation remained elevated.
The Bank of England (BoE) lists Nov. 5 for its next policy announcement and currently sets Bank Rate at 3.75%. At its September meeting, six members voted to hold the rate and three favored raising it to 4%. The BoE’s September material linked inflation risks to an energy shock associated with prolonged conflict in the Middle East.
FXStreet also reported that markets priced about an 87% chance of a Fed increase in December and described a BoE move to 4% as almost certain. Those were market expectations, not announced policy decisions.
EconoTimes put sterling near $1.3380 in its earlier coverage of the pound-dollar rate on Oct. 23, when a survey showed stronger U.K. business activity.
