The pair has been trading within a tight range over the last 24 hours as a period of consolidation has set in in the markets.The dollar has been holding steady and with yesterday being the first trading day of the week, there was more of trade positioning and watching of the price action by the traders and this limited the action in the markets.
GBPUSD Continues in Range
The UK economy is likely to see some recovery in case the Brexit process goes according to the plan. The choppy economic data from the UK over the last week should have served as a warning for the negotiators that it is very important for the economy that the Brexit talks and deals go according to the script else it could potentially have disastrous consequences for the UK economy. This is something that everyone would like to avoid as an uncertain economy in the UK is not something that the global leaders would wish. This places the responsibility on both the UK and the Euro leaders to chalk out a good trade deal for either side.
The US awaits further data as the incoming data from the US last week was choppy and unclear. The market is looking forward to 3 rate hikes from the Fed but with the new Fed Chief Powell taking over in February, not much is known about how he works and what he will do and this has placed a bit of uncertainty for the US economy and the dollar as such. The Fed and the incoming data should work in tandem for this notion to be dispelled so that some stability could be brought into the dollar which is important for the global economy.
Looking ahead to the rest of the day, there is not much by way of economic data or fundamentals from the UK or the US for the day and hence we should continue to see the ranging between 1.35 and 1.36 for the day which should keep the traders occupied, especially the day traders.