The GBPUSD pair continued to trade in a choppy manner for another day yesterday as the weakness in the dollar and the weakness in the pound competed with each other leading to some confusion and uncertainty in the markets over trading in this pair. The pair basically traded on either side of 1.31 during the course of the day with no specific direction but now it sits just below the 1.3150 looking neutral and steady.
GBPUSD Continues to be Choppy
The dollar weakened during the course of the day yesterday as the tax reform bill for the corporates got delayed by a year. After having successfully pushed through the bill, it was the nuances and the implementation that was likely to be the key and the fact that the corporate tax cut plan was delayed by a year was considered a bit of a setback for the large corporates who were looking to enjoy the benefits this year itself. This led to some unwinding of the dollar long positions which helped the pound to climb higher late in the day.
On the other hand, the pound continues to be hounded by the Brexit process with not much of progress in the talks as of now. The UK PM May continues to firefight domestic issues and opposition to the plan from within her party itself and the lack of progress in the talks continues to add to the pressure on her. She realises that she cannot avoid a setback in the process which could lead to the end of her reign as the PM of UK and she is likely to do everything in her powers to avoid the same. This is clearly weighing on the pound as well.
Looking ahead to the rest of the day, we have the manufacturing production data from the UK to be released during the London session while it is a bank holiday in the US today. With the incoming data from the UK being weak of late, todays data is likely to bring in some volatility depending on the way it goes and hence expect some choppy trading around the 1.3150 region for the day.
This article was originally posted on FX Empire
More From FXEMPIRE:
- USD/JPY Price Forecast November 10, 2017, Technical Analysis
- Dow Jones 30 and NASDAQ 100 Price Forecast November 10, 2017, Technical Analysis
- S&P 500 Price Forecast November 10, 2017, Technical Analysis
- Brexit and Economic Data Bring the GBP in Focus
- U.S. Markets Tumble on Disappointing Tax Reform News
- BTC/USD Remains In Uptrend From 5020