GBP/USD Daily Fundamental Forecast – June 27, 2017

The prices of GBPUSD have also been under pressure over the last 24 hours as the strength of the dollar has been dominating across the markets since last evening. This was due to the durable goods data from the US which showed that the fall, which had been happening over the last few months, has stopped and this could mean a turn around in the data from the US.

GBPUSD Likely to be Volatile

This turn around is key for the Fed to contemplate further rate hikes in the near future and in fact, the Fed is basing their economic and monetary outlook on the hope that the data would turn around. This was the reason why they had chosen to ignore the incoming data from the last month or so and chose to hike the rates as promised this month. The markets hope that this would mark the beginning of better data from the US and if that happens, then we should see the dollar gaining in strength more and more.

This is likely to place the GBPUSD pair under a lot of pressure as the pound is already reeling under a lot of uncertainty and fear. With the elections and the new government finally settling into place, the focus would now shift to the Brexit negotiations and with the Euro leaders confident that they would get the best deal out of the UK, it is going to be a challenge for May to ensure that the UK gets its due. This is in turn going to lead to a lot of contradictory news and rumors which is likely to keep the pair volatile.

Looking ahead to the rest of the day, we have the BOE Governor Carney speaking and we have the financial stability report from the UK as well. We also have the Fed chief Yellen speaking and all this should guarantee a lot of volatility in the GBPUSD pair for today.