GBPUSD – Flat
GBPUSD trading plan:
The Federal Reserve is seen sticking to sharp interest rate hikes in coming months to cool inflation, but rising U.S. unemployment and a slowdown in wage growth has traders betting that borrowing costs next year may not end up quite as high as previously anticipated. That’s the read from markets after the Labor Department reported that employers added a more-than-expected 315,000 jobs last month, the unemployment rate rose to 3.7% from 3.5% as more workers joined the labor force, and wage growth slowed from its earlier torrid pace. Traders still expect the Fed to deliver a third 75-basis point rate hike at its Sept 20-21 meeting. Futures contracts closely linked to the Fed’s policy rate for next year show traders are now pricing in a top Fed funds rate in the bottom of the 3.75%-4% range by March, down from near the top of that range earlier.
Investment idea: sell 1.1520 and take profit 1.1425.
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