GBP/USD consolidates in a range around 1.2700 mark, downside potential seems limited
The GBP/USD pair ticks higher following an Asian session dip on Monday, albeit lacks follow-through and remains confined in a familiar range held over the past two weeks or so. Spot prices currently trade around the 1.2700 mark, nearly unchanged for the day as traders await a fresh catalyst before positioning for a firm near-term trajectory.
Hence, the focus remains glued to the outcome of the highly-anticipated two-day FOMC monetary policy meeting starting on Tuesday amid the uncertainty over the timing of the first interest rate cut. Data released on Friday showed that the US inflation rose modestly in December and reaffirmed expectations that the Federal Reserve will cut rates by the middle of 2024. That said, stronger growth in Personal Incomes fueled a surge in spending, which, along with the upbeat US Q4 GDP print, suggested that the economy is still in good shape. This, in turn, raises doubts over the possibility of more aggressive policy easing by the Federal Reserve (Fed), which acts as a tailwind for the US Dollar (USD) and should cap the GBP/USD pair. Read more...
GBP/USD Weekly Forecast: GBP/USD looks to BoE for near-term direction
It was a fairly choppy week for the British pound, which prompted GBP/USD to maintain its consolidative fashion between 1.2600 and 1.2800. Read more...
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