GBPUSD DIPS BELOW $1.27 DURING INTRADAY MOVES; FOMC AND BOE POLICY OUTCOMES TO DICTATE FURTHER DIRECTION

Published on Jan 31, 2024 12:00

UK pound is staying submissive against the dollar on Wednesday, apprehensive about the outcome of forthcoming central bank policy meets. The Fed�s FOMC as well as BoE�s monetary policy this week is likely to dictate further direction for the currency pair. GBPUSD is currently quoting at $1.2681, down 0.15% on the day. Rebound in greenback is seen adding further pressure on peer currencies. Benchmark US treasury yields hold above 4% and the dollar index that measures the greenback against a basket of currencies is trading at to 103.42, near seven week high. COT data this week came in almost unchanged although net speculative longs continue to stay around 4-month highs, arresting some of the downside for the pair. On the NSE, GBPINR futures are hitting resistance at around105.50 and currently quoting at 105.42, down 0.05% on the day.