GBPUSD Still Choppy

It has been a volatile time in the markets over the last couple of months and the pound has not been an exception to that. Yeterday, we aw the pair make a move towards the 1.40 support region and this move was due to the weak manufacturing PMI data which came out of the UK. This was a setback to the bulls who had expected the smooth progress in the Brexit process to help the pound higher.

GBPUSD In Choppy Trading

They had also expected the economic data to continue the trend of being steady but the fact that it did not happen was a surprise for the bulls and the traders sold off the pound which led to the threat of the 1.40 region. But later in the day, the sentiment picked up all across the markets and the dollar suffered on account of that. This helped the pound to rip higher and it now trades close to the 1.4080 region as of this writing.

Though the markets have been pretty volatile for the past few week, this week, we are seeing that the markets are a bit subdued as the investors and traders are being driven off by the geopolitical issues and the threat of a global trade war. Though efforts are on to ensure that such a thing does not happen, the threat continues to remain and dominate the market headlines and this has been helping the pair to remain choppy over the last few days. The traders are also likely to be waiting for the NFP data tomorrow from the US to bring clarity into how the US economy is doing.

Looking ahead to the rest of the day, we have the services PMI data from the UK but we do not have any further economic news or data from the US. We expect the choppy trading to continue for the rest of the day.