Key Events Today:

12:30 UTC: USD – Consumer Price Index.

The GBP/USD pair extends its losing streak for the fourth consecutive session, trading near 1.2740 in the Asian hours on Wednesday. The pair’s decline is attributed to a stronger U.S. dollar (USD) amid optimism surrounding Trump’s policies.

The U.S. dollar is strengthening as analysts note that Trump’s fiscal policy could boost investments, spending, and labor demand, potentially increasing inflation risks. Such a scenario may push the Federal Reserve (Fed) toward a more hawkish monetary policy stance.

Traders are now focused on the upcoming U.S. inflation data on Wednesday for further guidance on U.S. policy. Core Consumer Price Index (CPI) is expected to rise by 2.6% year-over-year for October, while headline CPI is projected at 3.3%.

The British pound (GBP) has weakened following mixed UK labor market data. On Tuesday, employment data indicated a softening labor market over the three months ending in September. The ILO unemployment rate rose to 4.3% from 4.0% in the previous period, exceeding the anticipated 4.1%. During the same period, employment change showed that UK employers added 219,000 new jobs, well below the previous figure of 373,000.

The Bank of England’s (BoE) latest monetary policy report is set to be released on Wednesday, and investors will be keen to assess any potential insights on how the BoE plans to manage the UK’s unbalanced economy amid ongoing inflation concerns.

Recommendation: Predominantly trade with Sell orders from the current price level.