- The Pound Sterling rises above 1.3460, as worries about a potential US government shutdown impact market sentiment and the release of crucial economic data.
- Job openings in the U.S. reached 7.227 million, while consumer confidence fell short of expectations in recent reports.
- The UK GDP growth outperformed the forecast of 1.4% year-on-year, although this was mainly influenced by a weakening U.S. dollar.
The Pound Sterling (GBP) has continued to gain, marking a third consecutive day of increases, up by 0.20% as investors move away from the U.S. dollar (USD) due to concerns surrounding a potential government shutdown. As of now, GBP/USD is trading at 1.3461.
Sterling’s Third-Day Gains Amidst Political Stalemate in Washington
The ongoing stalemate between the White House and Democratic leaders over U.S. government funding is causing anxiety among traders, especially with the risk that this could delay essential economic data releases, including the non-farm payrolls scheduled for Friday.
In the U.S., job openings were tallied at 7.2 million, surpassing the estimate of 7.2 million from a previous total of 780 million in July. Meanwhile, the Conference Board reported that consumer confidence fell short of expectations at 94.2, down from 97.8 in August and below the anticipated 96.0.
Stephanie Guichard, a senior economist at the Conference Board, noted a deterioration in consumers’ perceptions of business conditions, contributing to a ninth consecutive month of declining job availability.
UK GDP growth in the second quarter exceeded the consensus forecast of 1.4%, increasing from the earlier print of 1.2%. Yet, this positive data didn’t support Sterling much, being largely aided by the overarching weakness of the U.S. dollar.
Nonetheless, GBP/USD might finish the month down by 0.40%, though differing central bank policies indicate that the pair could potentially rebound soon.
GBP/USD Price Forecast: Range of 1.3300-1.3450
Technically, GBP/USD has remained within the range of 1.3300-1.3450 over the past three days, hovering below the combined levels of the 50, 100, and 20-day simple moving averages (SMA) around 1.3463, 1.3488, and 1.3504.
The relative strength index (RSI) suggests a bearish trend but is gradually approaching neutral levels, implying some buying momentum is building in the short term.
If GBP/USD surpasses the 1.3500 mark, the next resistance levels to watch for will be 1.3550 and 1.3600. On the flip side, if the pair dips below 1.3400, the next focus point would likely be 1.3323, which was observed on September 25.
This Month’s Sterling Prices Against Major Currencies
Below is a table showcasing the movements of the British pound (GBP) against key currencies this month. The pound showed the strongest performance against the New Zealand dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.30% | 0.36% | 0.61% | 1.39% | -1.01% | 1.59% | -0.35% | |
| EUR | 0.30% | 0.67% | 0.85% | 1.69% | -0.72% | 1.90% | -0.05% | |
| GBP | -0.36% | -0.67% | 0.08% | 1.02% | -1.37% | 1.23% | -0.66% | |
| JPY | -0.61% | -0.85% | -0.08% | 0.84% | -1.60% | 1.01% | -0.92% | |
| CAD | -1.39% | -1.69% | -1.02% | -0.84% | -2.35% | 0.20% | -1.66% | |
| AUD | 1.01% | 0.72% | 1.37% | 1.60% | 2.35% | 2.64% | 0.71% | |
| NZD | -1.59% | -1.90% | -1.23% | -1.01% | -0.20% | -2.64% | -1.86% | |
| CHF | 0.35% | 0.05% | 0.66% | 0.92% | 1.66% | -0.71% | 1.86% |
The heatmap demonstrates the changes in rates among major currencies. The base currency is selected from the left column, with the quoted currency from the top row. For instance, if you pick the British pound from the left and examine its rate against the U.S. dollar in the grid, the displayed box indicates the rate of GBP (base) to USD (quote).
