GBP/USD trades in lower half of tight daily range near 1.3030
|- Annual CPI in the UK stays unchanged at 1.9% in March.
- US Dollar Index fails to move away from 97 for the third straight day.
- Trade deficit narrows more than expected in the U.S.
The GBP/USD pair is having a difficult time setting its next short-term direction on Wednesday and fluctuating in a 30-pip range amid a lack of Brexit headlines, which have been the primary driver of the British pound's market action. As of writing, the pair was down 0.11% on the day at 1.3034.
Earlier today, the data published by the UK's Office for National Statistics revealed that the inflation, as measured by the Consumer Price Index, rose 0.2% and 1.9% on a monthly and yearly basis, respectively, and both figures fell short of the market expectation. Further details of the report revealed that the Retail Price Index and the Producer Price Index (output) both stayed unchanged.
Although these data put the GBP under modest selling pressure, the dismal mood surrounding the greenback didn't allow the pair to post meaningful losses.
Despite the fact that the U.S. Census Bureau reported a lower-than-expected trade deficit in February, the US Dollar Index failed to gain traction and extended its sideways movement near the 97 mark, where it was down 0.06% on a daily basis.
With the UK Parliament in Easter recess, participants are unlikely to see any Brexit headlines in the remainder of the week. On the other hand, tomorrow's economic docket will feature retails sales from both the UK and the U.S.
Previewing the UK sales data, "In case of sales meeting expectations and drop at a moderate scale, there is more room to the downside than the upside. In case of a worse deterioration in consumers' behavior, the pair could fall at a faster clip. It would take a substantial upside surprise to trigger a rise, especially a sustainable one," FXStreet Analyst Yohay Elam said.
Technical levels to consider
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