GBP/USD is Trying To Base?

As the economic numbers are worsening in the U.S., the Federal Reserve might cut rates again in one the coming meetings. The U.S. dollar, in the mean time, appears to be topping against major currencies.

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The economic growth is worsening in the U.S.

Economic numbers are worsening in the United States, as consumes are contracting, housing has not found a bottom yet and unemployment is rising. So, in an effort to stop what appears to be landslide, the Federal Reserve could lower rates again in one of the coming meetings. In November, payrolls declined by 533,000, while October’s data was revised to 320,000 from 240,000 and September’s to 403,000 from 284,000. Unemployment rose 0.2% month-on-months to 6.7%, from 6.5% in October which represents the highest level of the past 15 years. Like the previous months, job losses were broad based and only the government sector added new positions. In reality, the deep economic contraction is permeating various levels of the U.S. economy. Factory orders, as an example, slumped 5.1% (-3.0% expected) in October, the worst down move of the past eight years, after sliding 3.1% in September. Demand for durable goods declined 6.9%, while non-defense capital goods excluding aircraft, an indicator for capital spending, slid 5.0% after falling 3.4% in September. Since a few months, both the manufacturing and the service industries are in steep downtrend and more weakness is expected in the near future.


Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media.

This article contains the following sections:

# The economic growth is worsening in the U.S.

# Europe: a bold rate cut, more are coming

# GBP/USD: a strong rebound is possible?