GBP/USD Daily Fundamental Forecast – July 24, 2017

There has been a little bit of dollar weakness around in the markets since this morning and for once, the GBPUSD pair has made use of this weakness to push above the 1.30 mark and trade just above it as of this writing. It has to be noted that the dollar stayed weak during a large part of last week but still the pound was unable to take advantage of it during the course of last week and ended the week below the 1.30 mark.

GBPUSD Still Waiting for Some Respite

This was no surprise as apart from the strong move in the week before, the pound has continued to trade in a weak manner and within a tight range as the risk and uncertainties continued to plague the pound. The Brexit negotiations have begun but no significant progress has been made nor any announcements have been forthcoming regarding this over the last few weeks and this has helped to keep the pound weak and fluid.

While the rest of the market has made full use of the weakness in the dollar to push the respective currencies higher, the pound has been generally struggling to make much of an impact against the dollar. It was the same case on Friday as well as the pair traded weakly and ended the week in less than spectacular fashion. The fact that the last few pieces of data from the UK has been mixed, has not helped matters either as the GBPUSD pair continues to chop around the 1.30 mark over the last few days.

Looking ahead to the rest of the day, we do not have any major news from the UK or the US for the day. With this being the last week of the month, we can expect some month end currency flows in the pound and the euro which is likely to affect the GBPUSD pair during the course of the day.