Pound Trapped Below N1,850 as Traders Await US Inflation Data

The British pound has been unable to break through the N1,850 support line since July 20th. According to recent tick data from the Central Bank of Nigeria (CBN), the currency's price action is tight and range-bound between N1,830/£ and N1,845/£.

Traders are bracing for the release of US inflation data on Wednesday afternoon, which could impact the pound's value. The CBN has been working to ensure foreign currency availability and tame liquidity through monetary tightening measures.

In the medium to long term, endogenous demand is expected to drive an appreciation of the Nigerian naira against the British pound. However, the pound's direction remains influenced by UK inflation outlook and Bank of England (BoE) rate path.