GBPUSD SIGNAL 26-12-2022 : GBPUSD Forecast Bulls Target $1.0750 to Bring $1.21 into Play.

GBPUSD SIGNAL 26-12-2022 : GBPUSD Forecast Bulls Target $1.0750 to Bring $1.21 into Play.

It is a quiet day ahead for the GBPUSD. There are no UK economic indicators for the markets to consider today, with the UK markets closed on Boxing Day.

GBPUSD SIGNAL : With the European and UK markets closed and the lack of stats, there are unlikely to be any material moves through the Asian and UK sessions. We could see some activity during the US session, though volumes are unlikely to see a material jump.

The quiet session will allow investors to consider the current economic outlook and the balance of power between the Fed and the BoE.

While US economic indicators on Friday reflected the early signs of Fed policy effects on the economy, the US unemployment rate sits at 3.7%, well below the 5% mandate. Labor market conditions suggest the Fed has more wriggle room to bring inflation to target.

GBPUSD SIGNAL : By contrast, the latest UK labor market report was less impressive. The unemployment rate ticked up, with claimant counts pointing to a further rise in the unemployment rate over the near term.

Significantly, the UK economy contracted in Q3. In contrast, the US economy expanded at a more marked pace than economists anticipated, suggesting that the BoE would need to take its foot off the gas sooner than the Fed.

Last month, the Bank of England warned that the UK is facing its lengthiest recession on record. The downward revision to Q3 GDP numbers could force the BoE to pause and assess the impact of lifting rates to their highest level since 2008.

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