The GBPUSD pair continues to trade in the range between the 1.35 and 1.36 region during the course of the last 24 hours. This is despite the boost that it got from the weak incoming data from the US and it now trades in the 1.3550 region as of this writing. Unlike other pairs, the GBPUSD seem to be a bit lost for direction and the bulls have not been able to take full advantage of the weakness in the dollar.
GBPUSD Still in Range
Yesterday, we had the PPI and unemployment claims data from the US and both of these data came in weaker than expected. This was a setback for the dollar bulls who had expected some strong data from the US in the hopes of continuing the recovery in the dollar. But the fact that the data coming in was weak pushed it on the backfoot and this helped the pair climb through the 1.35 region and trade higher over the last 24 hours.
The lack of fundamental drivers for the pound has been very telling and that is one of the main reasons why it has not been able to push higher after the bullish leg that we had seen in the pair during the second half of December. This is a period of stalemate where there is not much happening in the Brexit talks and hence progress in that aspect has been slow. And with the pound itself not being in a position to move higher, it has to rely on the strength and the weakness of the dollar to determine its moves and that is why we are seeing the pair chopping around for much of this week with no specific direction.
Looking ahead to the rest of the day, we have the inflation and retail sales data from the US while we do not have any data from the UK. These pieces of data from the US are the most important ones after the employment data and hence they are likely to be closely tracked by the markets.
This article was originally posted on FX Empire
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