GBPUSD
The British pound (GBP) slightly increased on Monday following a cabinet reshuffle by British Prime Minister Rishi Sunak. He appointed ex-Prime Minister David Cameron as a Foreign Secretary and fired U.K. Interior Minister Suella Braverman.
Possible effects for traders
The Bank of England officials Huw Pill and Katherine Mann raised concerns about the long-term impact of rising interest rates. They indicated being supportive of earlier rate cuts due to growing recession fears. The outlook for GBPUSD improved after the preliminary U.K. Gross Domestic Product data exceeded market expectations, suggesting the country might avoid a recession in 2023. Still, economic growth prospects appear grim, with expectations of reduced corporate investments for capacity expansion in Q4 due to weak demand domestically and internationally.
GBPUSD was rising during the early European trading sessions after the U.K. Employment change report showed the number of working people rose by 54,000 in the three months to August 2023, outperforming market expectations of a 198,000 decline. However, the country still faces some economic challenges, which put downward pressure on the GBP exchange rate. Today’s key event for GBPUSD traders is the U.S. Consumer Price Index (CPI) report at 1:30 p.m. UTC. Higher-than-expected figures will almost certainly deepen the bearish trend in GBPUSD. However, if CPI numbers are lower than expected, the pair may rise above 1.23000.
 report at 1:30 p.m. UTC. Higher-than-expected figures will almost certainly deepen the bearish trend in GBPUSD. However, if CPI numbers are lower than expected, the pair may rise above 1.23000.){kind=link}