UK Pound Confined In Tight Range Against Dollar; FOMC, BoE To Dictate Direction

Published on Jan 30, 2024 11:53

UK pound is trading in an extremely narrow band against the dollar on Tuesday awaiting further clarity from FOMC and BoE monetary policy meets this week. Pound is holding slightly higher in early Asian trades amid a mild pullback in dollar index staying cautious, although still holding in to recent gains above 103 mark. GBPUSD is currently quoting at $1.2710, up 0.11% on the day. This week policy decisions are likely to give much clarity to the pair. Meanwhile, data today showed Inflation in UK stores fell to the lowest level in more than 18 months in another sign that the cost-of-living crisis is starting to ease. Shop prices were 2.9% higher year-on-year in January compared with a 4.3% annual increase in December, the British Retail Consortium said Tuesday. On the NSE, the front month GBPINR futures contract is at 105.70, marginally unmoved and awaiting further cues for direction.