GBP/USD has ticked lower in the Thursday session. In North American trade, the pair is trading at 1.3112, down 0.12% on the day. There are no British events on the schedule. In the U.S., unemployment claims remained pegged at 214 thousand. Later in the day, the Federal Reserve winds up its policy meeting and will release a rate statement. On Friday, the U.K releases GDP and Manufacturing Production.
The pound has enjoyed a strong week, gaining 1.22% in that time. The pound is currently at its highest level in three weeks, boosted by broad weakness from the U.S dollar. GBP/USD is unchanged on Thursday, but traders can expect some movement from the pair on Friday, with the release of GDP reports. Preliminary GDP for Q3 is expected to post a strong gain of 0.6%, after a 0.4% gain in Final GDP in the second quarter. A strong GDP release would likely reignite the pound rally.
After digesting the results of the U.S. midterm elections, investors will be focusing on the Federal Reserve, which will hold its monthly policy meeting. The Fed is widely expected to maintain interest rates, after raising rates by 25 basis points in September. The markets will be combing through the rate statement, as the tone of the statement could move the U.S dollar. The Fed has sounded hawkish in the September statement, acknowledging the booming U.S economy and reiterating that it planned to continue its stance of gradually raising rates. The Fed is expected to raise rates in December, which would mark a fourth hike in 2018, and continue with at least three rate hikes in 2019.