GBP/USD again limited by 1.2700, remains in a small range flat for the day
- Cable steady in a 25-pip range, between 1.2675 and 1.2700.
- Stronger US Dollar sends GBP/USD back below 1.2700.
The GBP/USD pair reached a daily high at 1.2707 at the beginning of the American session and then pulled back modestly and as of writing trades at 1.2685, around the same level it closed yesterday.
Again the move to the upside lost momentum at the 1.2700 area. The mentioned level has become relevant in the very short-term. A consolidation on top could point to more gains. On a wider perspective, GBP/USD continues to trade sideways, in a consolidation range between 1.2650 and 1.2750.
US data released today showed a modest increase in initial jobless claims. Volatility across markets remain low with crude oil prices as the main attraction. The greenback is posting mixed results across the board as it continues to be affected by monetary policy expectations from the Federal Reserve. A survey from the WSJ showed that 40% of economist survey see a rate cut in July.
Regarding the Pound, attention is set on the Conservative Party leadership election. Boris Johnson topped the first ballot and continues to be the main candidate to become the next UK Prime Minister. His position on Brexit contributes to increasing fears about a “no deal” scenario and weighs on the Pound. Today the vote showed no surprise and the Pound actually recover against its main European rivals.
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Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
