- GBP/USD failed to capitalize on its early uptick to levels beyond the 1.2800 mark.
- Stronger-than-expected UK Construction PMI failed to impress the GBP bulls.
The GBP/USD pair held steady with modest gains, around the 1.2770-75 region and had a rather muted reaction to the latest UK macro releases.
The pair failed to capitalize on its early uptick to levels just above the 1.2800 mark amid persistent uncertainty about the future UK-EU trade relationship and fears of a no-deal Brexit.
Bulls shrug off upbeat UK data
This coupled with a modest pickup in the US dollar, backed by a solid rebound in the US Treasury bond yields, turned out to be one of the key factors that prompted some selling at higher levels.
It is worth reporting that speculations of potential monetary policy easing by major central banks boosted investors’ sentiment and allowed the US bond yields to rebound sharply from all-time lows.
Meanwhile, an upward revision of the UK Construction PMI print to 52.6 for February as compared to 48.4 estimated earlier failed to impress bulls or provide any meaningful impetus to the major.
Market participants preferred to stay on the sidelines and await a fresh catalyst from the BoE’s Monetary Policy Report Hearings, which might infuse some volatility across the GBP pairs.
Apart from this, investors will also keep a close eye on any headlines coming out of the first formal meeting between the UK chief Brexit negotiator, David Frost, and his EU counterpart.
This coupled with the G7 teleconference call will draw investors’ attention and further contribute towards producing some meaningful trading opportunities amid empty US economic docket.
Technical levels to watch
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