|Day's range||1.246 - 1.248|
|52-week range||1.1959 - 1.3349|
The British pound has fallen a bit from the 1.25 level again waiting for the Federal Reserve. And as a result it’s likely that the market is going to continue to recognize this area as being crucial ahead of the Federal Reserve announcement.
It has been an uneventful Tuesday session, as the Canadian, Mexican and British currencies are content to drift. However, that could change later in the day, as the Federal Reserve is widely expected to lower rates at its monthly policy meeting. As well, the Fed’s rate statement could also impact on the currency markets.
UK Inflation was weaker than expected on Wednesday and with the BOE announcement a probable non-event on Thursday, Sterling continues to be strapped by Brexit uncertainty.
After briefly piercing to a fresh eight week high, GBP/USD has fallen under pressure in early trading on Wednesday as UK inflation data came in softer than expected.
Relief is set to sweep across financial markets after Saudi energy minister pulled down the threat of an escalation in geopolitical tensions in the region, and by stating the Oil production output will be fully back online by the end of September.
With economic data on the lighter side, the market focus will be on Brexit chatter and the FOMC. For the Loonie, inflation figures will also influence.
The British pound broke down a bit early during the trading session on Tuesday but continues to find stubborn support just below. By doing so, it looks as if the market is going to hang about the 1.25 region, trying to decide whether it’s too expensive or not.
Investing.com - The Canadian dollar was weaker against the U.S. dollar on Tuesday after soft manufacturing data and falling oil prices erased gains from the prior session.
Uncertainty over how the U.S will respond to the attacks on Saudi oil feeds could leave the markets tentative ahead of tomorrow’s FOMC decision.
The British pound fell a bit to kick off the week on Monday, as there was a general run toward safety after the drone attacks in Saudi Arabia. Beyond that, the British pound had been over bought so quite frankly it makes quite a bit of sense that we have pulled back.
GBP/USD is under a bit of pressure at the start of the week after an impressive two-week recovery that took the exchange rate to a seven-week high.
Attacks on Saudi oil fields drove demand for the Yen and the Loonie as oil prices surged. Johnson is in focus later today and the GBP needs progress.
Investing.com - The safe haven yen and Swiss franc look likely to strengthen when markets open this week amid heightened geopolitical tensions in the Middle East after weekend attacks on Saudi oil plants disrupted global oil supplies.
It’s a big week ahead for the markets. The FED, the BoE and Brexit are in focus, with stats and chatter on trade also needing some attention.
While UK politics continues to raise eyebrows, the British PM’s eagerness to garner a deal with the EU was key. In the week ahead, more progress is needed.
The British pound rallied a bit during the week, reaching towards the 1.25 level above. That’s an area that should attract a lot of attention and could be a major resistance barrier that will be difficult for the British pound to take out.
The British pound rallied significantly during the trading session on Friday as we started to reach towards the 1.25 GBP level. That of course is an area that will attract a certain amount of psychological attention, not to mention the fact that we have seen structural noise in that region.