The pound moved lower during the course of trading yesterday as the weakness in the dollar seemed to have little impact on the pound. We found that the GBPUSD pair was unable to break through the 1.34 region during the course of trading yesterday and has since corrected lower in a slow and steady manner.
GBPUSD Fails to Take Advantage
There has not been any major fundamental developments that is likely to have affected the pound and even the speech from Carney was on expected lines and it did not appear to have much of an impact on the pound but we have to just say that the price action has turned choppy and this is likely to continue to be so as we head towards the end of the month and the end of the year and we look ahead to a period of holidays.
The Brexit process has been progressing and it looks that it is right on schedule with the leaders on both sides agreeing that the process and the talks have moved on to Phase 2. This is likely to be the key phase as the trade access for the UK post the Brexit is likely to be discussed during this period. This is a very important thing for both the Eurozone and the UK and this is likely to determine the strength of the UK economy post Brexit. The trade with the UK is also something that the Eurozone can afford to lose at this point of time and hence it is widely believed that there would be a deal that is likely to be beneficial for all sides eventually.
Looking ahead to the rest of the day, we do not have any major news from the UK but we have the final GDP data from the US. The traders need to be careful as the price action is likely to turn increasingly choppy in the days ahead and they are likely to be better served by going on a holiday themselves !
This article was originally posted on FX Empire