The currency pair still stays within the range limited by 1,3250 from above and 1,3000 from below. What’s happening? Why Pound is so frustrating currently?
There are two main reasons for that. First, The FOMC rises rates step by step according to their plans. Those plans are included in the price already. This is evident as there are no significant price moves during the FOMC meetings.
From the other side, Pound can’t find support from the Bank of England’s decisions as there are none of them. Marc Carney is still neutral fearing that Brexit may have significant negative impact on British economics.
There is one thing that may change the situation currently. We advise to pay attention to UK inflation data. BoA has set targets at 2% +- for this indicator. If CPI rises towards 3%, BoA may take hawkish decisions that may have bullish impact on GBP/USD.
Anyway, currently we are moving towards 1,3250, we think. This is the main scenario for the nearest future.
There are two main reasons for that. First, The FOMC rises rates step by step according to their plans. Those plans are included in the price already. This is evident as there are no significant price moves during the FOMC meetings.
From the other side, Pound can’t find support from the Bank of England’s decisions as there are none of them. Marc Carney is still neutral fearing that Brexit may have significant negative impact on British economics.
There is one thing that may change the situation currently. We advise to pay attention to UK inflation data. BoA has set targets at 2% +- for this indicator. If CPI rises towards 3%, BoA may take hawkish decisions that may have bullish impact on GBP/USD.
Anyway, currently we are moving towards 1,3250, we think. This is the main scenario for the nearest future.