GBPUSD: Boring trading in narrow price wedge
Updated
GBPUSD continues to move within a narrow price range today, with short-term and medium-term prospects favoring an upward trend, breaking out of the range and continuing to rise.
According to the CME FedWatch Tool, the probability of an interest rate cut in March has decreased from 80% at the beginning of the month to nearly 40% ahead of the Fed meeting. The USD index (DXY), which tracks the value of the USD against six major currencies, increased by 2% in January.
If the policy statement or Fed Chair Jerome Powell expresses an optimistic view on continuing the inflation reduction process and does not confirm that there will be no interest rate cuts in March, the USD may face selling pressure, allowing GBP/USD to rise after days of boring sideways movement.
According to the CME FedWatch Tool, the probability of an interest rate cut in March has decreased from 80% at the beginning of the month to nearly 40% ahead of the Fed meeting. The USD index (DXY), which tracks the value of the USD against six major currencies, increased by 2% in January.
If the policy statement or Fed Chair Jerome Powell expresses an optimistic view on continuing the inflation reduction process and does not confirm that there will be no interest rate cuts in March, the USD may face selling pressure, allowing GBP/USD to rise after days of boring sideways movement.
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