Yahoo Finance GBP/USD Daily Fundamental Forecast – February 21, 2018
The GBPUSD has so far managed to survive the onslaught from the dollar and though it is trading just below the 1.4 region as of this writing, it continues to look steady as the traders look ahead to the data from both the UK and the US later in the day which is likely to determine the short term trend.
GBPUSD Awaits Data
The pair has been able to hold on to its support region around the 1.40 price region for most of the day yesterday as the market awaits a large amount of data from the UK and the US. From the UK side, we have the average earnings index and the inflation report hearings. With the BOE already having hiked the rates once and also making its intention clear of further rate hikes and making it clear that they would do the needful as and when its required, irrespective of how the Brexit process is going on, the inflation report hearings is something that would be looked forward to.
The market would hope to see signs of an improving economy which is likely to boost the chances of the next rate hike coming along within the next few weeks. If this happens, then it is likely to be a large boost for the pound. On the other hand, we have the FOMC meeting minutes later in the day which is also being looked forward to by the market in the hope that they would talk about the rate hike in March and also future rate hikes as well.
It is going to be an interesting and volatile day in the market for the GBPUSD pair and as we have been saying in many of our forecasts, it is likely that the 1.40 region would be the price region of a battle between the bulls and the bears to gain control of the pair.
This article was originally posted on FX Empire
