GBP/USD Trades Sideways Ahead of Fed and BoE Decisions
The British Pound Sterling has been trading quietly near $1.3300 in New York morning hours, barely moving within a 30-pip range between $1.3250 and $1.3300.
This narrow range is seen as a sign that the market has already priced in the upcoming Federal Reserve decision on Wednesday and the Bank of England announcement two days later with its Monetary Policy Report.
The Pound Sterling has given back around 2.5 cents since its mid-July peak near $1.3550 without any significant catalyst, showing an orderly decline beneath declining averages rather than a violent one.
However, the Dollar's strength is dominating this exchange rate, sitting near a one-month high at 101.50 and absorbing the safety bid from the equity rout that saw Korean shares drop 11% and the Nikkei 225 fall close to 4%.