GBP/USD Price Stalls Ahead of Key Economic Data Releases
Sterling's price has stalled at 1.3643 against the US dollar, stuck in a range between 1.3600 and 1.3675 for two consecutive days.
The pair has been held back by the market waiting for key economic data releases on Wednesday and Friday, which could impact the Federal Reserve's interest rate decision.
Despite sterling's strong domestic data, including a six-month high in services PMI and a four-year high in export orders, it cannot break through due to dollar weakness, which has paused ahead of these data releases.
The Treasury's liquidity-support buyback operations have also played a significant role in the move, with estimates suggesting that $100 billion to $200 billion of genuinely deployable funds will be made available, leading to a sharp initial retreat in long-term US yields and a subsequent slide in the dollar.