Sterling Stagnant Amid Strong UK Data
The Pound Sterling (GBP) has been largely unaffected by domestic news and economic data in Britain. Despite a string of positive economic indicators, including a strong July flash services survey and a hawkish minority on the Bank of England's Monetary Policy Committee, the Pound remains flat against major currencies.
On Tuesday, the GBP/USD pair traded near 1.3450, with the Pound taking just 0.17% out of the Dollar, compared to 0.68% from the Australian Dollar and 0.45% from the New Zealand Dollar.
The Bank of England's next interest rate decision is six weeks away, on September 17th, leaving little catalyst for Sterling in the short term. Meanwhile, the American economy takes center stage this week with three key releases: a private payrolls estimate, the Institute for Supply Management (ISM) services index, and nonfarm payrolls.
The daily Stochastic Relative Strength Index (Stoch RSI) near 24 is one argument against a bullish bias, but the 5-minute reading near 73 suggests little more than intraday drift. The key levels to watch are the three-session ceiling near 1.3500 and the mid-July peak near 1.3550.