GBP/USD Price Forecast – GBP/USD Turns Range Bound As it struggles to Breach 1.33 Handle
The GBP/USD is trading flatly for Tuesday, splashing around the 1.3280 level with a quiet session ahead. The Sterling saw little change in Monday’s session, initially dropping through Asia into 1.3220 before rebounding to claim a small gain on the day, closing the following US session near its current levels. The early week for the GBP is a thin showing on the economic calendar, though a couple of speeches from MPC members could bring some activity. The pair has maintained range bound performance across Asian market hours trading around 1.327 handle slightly below Friday’s high’s but well inside bullish price band. There was no major macro data update in UK market yesterday, however positive momentum in Euro influenced by weak US Greenback has helped the British Pound retain its momentum in upper price bands as Sterling tries to breach 1.33 handle.
GBPUSD Turns Range Bound
Bank of England’s Monetary Policy Committee members Haskel and McCafferty are giving a set of speeches, beginning at 09:00 and 09:30 GMT respectively, but their planned talking points are expected to remain mid-tier, and unlikely to divulge much new information about the Bank of England’s (BoE) future moves. GBP traders will be looking forward to BoE Governor Mark Carney’s speech coming on Thursday regarding the central bank’s Financial Stability Report, leaving traders to sit on the sidelines during the London market until then. Tuesday’s upcoming US session also sees some speeches from central bank board members, with the FOMC’s Bostic and Kaplan giving their own mid-tier speeches at 17:00 GMT and 17:45 GMT respectively. On release front US markets will also see the release of CB consumer confidence data.
US Dollar is expected to continue its bearish performance during today’s European market hours. The trade wars between US and China continues to influence market inspiring dovish sentiment around US dollar. While White House trade and manufacturing adviser Peter Navarro has said that any investment restrictions proposed by the Trump administration would target China, U.S. Treasury Secretary Steven Mnuchin has said that investment restriction from department will not be specific to China but would apply “to all countries that are trying to steal our technology”. With contradicting statement released by key figures in American session yesterday, Investors await US market for fresh impetus on trade war proceedings to gauge current sentiment surrounding US Greenback before placing further bets in US dollar’s favor as trading session moves further into the week.