GBPUSD – Flat
GBPUSD trading plan:
The U.S. dollar may have already seen its highest levels for the year given growing evidence of slowing inflation and a weakening labor market in the world’s largest economy. For a big dollar downtrend to kick off, we really need more confidence that U.S. inflation – and by extension Fed Fund pricing – is sustainably coming down. The U.S. 5-year/30-year yield curve needs to steepen aggressively to start a big dollar downtrend. That curve has steepened since late September, with the spread currently at 4.4 basis points. Some Fed officials have said it may be time to start moderating the pace of rate increases following a report last week that showed a slowdown in consumer inflation.
Investment idea: buy 1.1860 and take profit 1.1944.
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