The GBPUSD pair also continues to range and consolidate and it has 1.35 as the strong support region below which has helped it to stay afloat for now. Last week, we saw some mixed data from the UK and the US as well and this has given conflicting signals to the traders and they await further clarity this week as the market returns to full strength during the course of this period, after the long holiday.
GBPUSD Stuck in Range
The pair has been capped at the 1.36 region and even some weak data from the US in the form of NFP has not been enough to push the prices higher. The NFP data for this month came in weaker than expected but the data from the previous month was revised higher which helped the dollar to hold steady. The dollar has been choppy over the last week as it has been unable to break out in either direction. The weakness in the dollar had set in during the previous month and that was expected to reverse when the traders came back from their holidays but none of that has happened as yet.
The Brexit process continues as scheduled and though there have been some ups and downs, the leaders seem to have been able to keep the talks on track and they now look forward to Phase 2 which is expected to be the most crucial part of the talks as it involves the subject of trade access, which is likely to determine how the UK economy fares after the Brexit. The data has been wobbly of late and that just underscores how important it is for the leaders to get these talks correct.
Looking ahead to the rest of the day, we do not have any major economic data from the US or the UK for today and with the lack of direction in the dollar, expect some more consolidation and ranging.
This article was originally posted on FX Empire
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