GBP/USD Daily Fundamental Forecast – October 5, 2017

The GBPUSD pair was also caught in a dull market yesterday though there has been a little more action today morning as the pair moved lower on general dollar strength across the board. But none of these actions over the past 24 hours indicate any trend of any sort and look more like positioning and consolidation as the market continues to wait for the next trigger.

GBPUSD Pair Joins On a Dull Day of Trading

It was a dull day of trading yesterday as the market chose to ignore all the important data and events that were lined up for the day. We had the ADP employment data from the US that came in as per expectations. We also had the non-manufacturing PMI which came in much better than what was expected. On the other hand, we have the services PMI data from the UK which also came in better than expectations. We also had speeches from Draghi and Yellen but the market chose to ignore all of these events and data as well.

The pound has been trading in a choppy manner on either side of 1.3250 over the last 24 hours and this is expected to continue today as well. The uncertainty over the Brexit process continues to weigh on the pound and it is not sure what sort of trigger that the market is waiting for, at this point of time. By the looks of it, the price action indicates that the pair is trying to form a base around here for a bounce but all of that would be dependent on the incoming data from the US. As long as this data is atleast as per expectations, we can expect the dollar to hold steady which would add to the pressure on the pound.

Looking ahead to the rest of the day, we do not have any major economic news from the UK but we have the unemployment claims data from the US and speeches from a couple of important Fed members who are expected to voice their views about the next Fed rate hike. It remains to be seen whether that would be enough to awaken GBPUSD from its slumber.