GBP/USD Daily Fundamental Forecast – November 24, 2017

The pound remained steady during the course of the day as the pound bulls could not take much advantage of the long weekend in the US which brought in some low volatility over the last 24 hours. This led to some dull trading in the pound market as even some news in the form of the GDP data could not enthuse the traders and the volatility was also pretty much less.

GBPUSD In Consolidation Mode

The day was marked by the release of the GDP data which came in as per expectations and though this did not seem to have any immediate impact on the prices of the pound, it should give some solace to the pound bulls that the economy is beginning to stabilise. Also, the release of the budget on the previous day, which projected a strong outlook, also helped to keep the pound steady in the short term as the Brexit talks progress.

The Brexit talks have been going on for quite some time now and so far, the domestic troubles of the UK PM May and the German leader Merkel seems to have had little impact on the talks. It is widely expected that there would be some break through in the talks in December and it remains to be seen whether that would be in the form of a clinching of a deal or whether the UK would walk out of the talks without any deal. Such an eventuality would not be good for the UK economy and the pound but according to some, this option still remains on the table.

Looking ahead to the rest of the day, we do not have much on the economic calendar and with the long weekend in the US on account of Thanksgiving, expect the pound to trade within a tight range and consolidate through the course of the day. It would turn out to be another dull day of trading as we approach the weekend.