Photo by Colin Watts on Unsplash 
 

GBP/USD found room on the high side on Monday, kicking off a holiday-shortened trading week with a fresh spat of Greenback weakness, bolstering the Pound Sterling (GBP) into its highest bids in ten weeks. Pound traders are largely brushing off the latest interest rate cut from the Bank of England (BoE) as the UK’s central bank policy strategy leaves the water murky for rate-cut watchers.

The Federal Reserve’s (Fed) own third straight rate cut recently has sapped support from the US Dollar (USD), sending the Greenback broadly lower across the board as markets head into an early closure this week for the holidays.

US ADP Employment change and Gross Domestic Product (GDP) growth figures are due on Tuesday and will serve as the final spurt of US economic data before the holiday shutdown. The ADP 4-week average last clocked in at a relatively disappointing 16.25K, implying that ongoing weakness in the US labor market is likely to continue. On the growth front, Annualized US GDP for the third quarter is expected to slow to 3.2% from 3.8%, flying in the face of Trump administration staff who have been suggesting that American growth could accelerate to 4-5% heading into the end of the year.

The Boe’s newfound policy approach of emphasizing “alternative scenarios” rather than a direct economic forecast and policy outlook will put pressure on rate-watchers moving forward. The nine members of the Monetary Policy Committee (MPC) will also directly disclose their personal interest rate outlook and policy approaches on a per-meeting basis. The BoE famously produces dissenting, or at least loud, policy opinions from its central planning members, especially compared to its more contemporary peer the Fed, which is famous for appearing to approach something similar to policy alignment in its statements.

GBP/USD daily chart
 

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