GBPUSD – Flat
GBPUSD: The GBPUSD is trending upwards, while the US Dollar (USD) is under pressure from market sentiment leaning towards expecting a Federal Reserve rate cut at the upcoming March meeting. This sentiment was reinforced when former Fed official James Bullard said at the National Association for Business Economics (NABE) conference that the Fed should consider lowering interest rates so as not to discourage economic activity due to rising rates. In Asian trading hours on Monday, the Pound-Dollar pair is trading around 1.2620.
UK housing data pointed to an annual improvement in property prices, which may have provided some support for the GBP/USD pair. The UK house price index rose by 0.1% in February, compared to the previous decline of 0.7%. However, the monthly report showed a contraction, with February’s rise of 0.9% compared to the previous increase of 1.3%.
The UK has officially entered a technical recession characterized by two consecutive quarters of negative GDP growth. In addition, Bank of England Governor Catherine L. Mann noted that the central bank needs at least one more set of inflation data before it determines its next course of action.
Trade recommendation: Trade predominantly on Buy from current values
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