GBP/USD subdued around 1.1840s after printing a YTD low around 1.1800
GBP/USD stays around 1.1840s, following hawkish remarks by the US Federal Reserve (Fed) Chair Jerome Powell. Powell’s two-day testimony before the US Congress will conclude on Wednesday at the US House of Representatives, with market participants expecting him to remain hawkish. Therefore, the GBP/USD is exchanging hands at 1.1843, gaining 0.10%. Read More…
GBP/USD hags near YTD low, remains vulnerable below 200 DMA amid bullish USD
The GBP/USD pair consolidates the previous day’s heavy losses and oscillates in a narrow band, just a few pips above its lowest level since November set earlier this Wednesday. The pair trades around the 1.1825 region during the first half of the European session and remains vulnerable below a technically significant 200-day Simple Moving Average (SMA). Read More…
GBP/USD faces the next support at 1.1750 – UOB
In light of the recent price action, GBP/USD could weaken further and meet the next support around 1.1750 according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang. Read More…
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Today the Pound Sterling weakened against the US dollar, as the GBP/USD pair hit a low of 1.1846. The pair was trading at 1.1849 at the time of writing.
The Pound Sterling has been trading in a sideways range over the past week, with the pair oscillating between 1.1900 and 1.1850. This range-bound price action is largely attributed to the lack of fundamental drivers in the UK. The Bank of England (BOE) has held its interest rates steady for two consecutive meetings and recently launched its new round of quantitative easing. These measures aim to support the UK economy as it continues to face the coronavirus pandemic.
Recent UK economic data has also been fairly lacklustre. Inflation fell to 0.7% in January, which is well below the BOE’s target of 2%. Meanwhile, wage growth has also slowed, with average earnings showing a 0.3% decline in January. These weak economic indicators have weighed on the Pound Sterling and capped the pair’s upward potential.
Looking ahead, the GBP/USD exchange rate could remain subdued in the near-term. The UK is set to present its budget on Wednesday, although it is unlikely to provide traders with much market-moving news. In addition, the UK is facing tougher coronavirus restrictions and some of the economic data released later this week could further weigh on the Pound.
Overall, the GBP/USD pair could remain range-bound in the near-term, with the pair trading around 1.1840s for the foreseeable future. However, any significant news from the UK regarding its post-Brexit trade relationship with the EU or higher-than-expected economic data could provide some support to the Pound Sterling and lift the pair back towards the 1.1900 level.
