Yahoo Finance GBP/USD Daily Fundamental Forecast – January 17, 2018
The GBPUSD pair also had a choppy day of trading yesterday as the dollar began to steady itself and the pair stuggled to break through the 1.38 region, something which it has been struggling with, since the beginning of the week. It now looks as though the traders are looking for a fundamental driver to the prices and it is likely to take some time for the traders to find the right direction in this pair.
GBPUSD Trades Near Range Highs
There was not much major economic news from the US yesterday and even the inflation data from the UK did not have much of an impact on the market. The inflation data came in as per expectations and this would have helped to assuage some of the doubts that the traders might have had regarding the state of the UK economy. The incoming data had been weak in recent times which led to the belief that the UK economy might be beginning to see the effects of the Brexit process but with one of the major parts of the data, in the form of inflation, coming in as per expectations, we should see the pound beginning to get steady.
The pound has also been influenced by all the talk of rate hikes from the BOE and the timeline for the same. The market expects the BOE to follow up on its action from last year when it did raise rates towards the end of the year and thus showed the markets that it meant business and that it would take the appropriate action when needed. This kind of a signal requires follow through as well and with the Brexit process on schedule and in the background, this is the focus of the markets right now.
Looking ahead to the rest of the day, we do not have any major news from the UK or the US for the day and expect the choppy trading to continue but with the GBPUSD pair just short of the 1.38 region, it appears only a matter of time before it breaks through and pushes through towards the 1.39 region.
This article was originally posted on FX Empire
