© Dukascopy Bank SA
The Pound was almost unchanged against the US Dollar on Monday, having trouble to keep its marginal gains amid a light-data session. Nevertheless, the next day, the Pound set a new eight-month bottom as bears revived the latest run amid UK public sector borrowing issues, even neglecting the data weakness on the other side of the Atlantic. Moreover, the same' date data showed that the UK economy grew less than first estimates in the past two quarters. Third-quarter GDP growth was revised down to 0.4% from the 0.5% previously estimated, while second-quarter GDP growth was revised down to 0.5% from the previously estimated 0.7%. The next day, the Sterling was seen higher against the Greenback, neglecting weaker-than-expected UK GDP data and relatively solid updates from the US, while bears felt fatigued after pushing too much recently.
On Thursday, the GBP/USD hit the 1.49 level, the pair's highest mark in a week and closed the week on a rather positive note amid Christmas holidays.
Meanwhile, this week sentiment among Dukascopy traders has significantly changed, as now 52% of traders predict the Pound to rise in value, while last week this scenario was suggested by 43% of Community members. Alongside, the average forecast for the end of the week is placed around the 1.49 level. Meanwhile, from the UK side no major data is expected. Among important American news, markets will be waiting for the Initial Jobless Claims as well as Chicago Purchasing Manager's index.
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