The pair continues to remain buoyant as the dollar turns choppy
The GBPUSD pair received a boost towards the London fix on Friday as there was not much impact from the NFP data and the geopolitical issues that seem to be dominating the market at this point of time. The pound continues to remain buoyant and the fact that it has help the 1.40 region should be a boost for the bulls.
GBPUSD Well Bid
The focus on Friday was on the NFP data from the US and that came in weaker than expected. But the data from the previous month was revised higher and this more or less compensated for the weak current data and hence the impact of this data on the markets and on the pair was limited. But the pair received a boost towards the London fix and this helped the pair to move higher towards the 1.41 region and it continues to trade near that region as of this writing.
There continues to be a lot of geopolitical tension out there with the threat of a global trade war breaking out and with the data from both the Eurozone and the UK showing signs of weakness in recent times, it has been a lot of choppy trading that is being seen in the markets over this period. This has made trading a bit difficult especially for the longer-term traders. We doubt whether things would become clear in the short term but we have to wait and see how the strengths of the various currencies begin to play out as these reports are absorbed by the market.
Looking ahead to the rest of the day, there is not much by way of economic data from the UK or the US for the day and hence we expect consolidation to continue at the 1.31 region during the course of the day. The GBPUSD pair is buoyant at this point of time as the threat of a trade war is keeping the dollar under pressure and the talk of a rate hike from the Fed is still a bit far away at this point of time.