Range bound trading in GBP/USD continued on Monday amid a lack of economic data or any fresh or major political/Brexit headlines. GBP investors are also seemingly taking a cautious approach to trading ahead of Thursday’s Bank of England monetary policy announcement. On this note, the odds of a rate hike on Thursday are priced at around 90%, and a rate hike thereafter (and before the end of the year) at about 12%.
The UK data docket is looking a little light again today so expect the steady range in GBP/USD to ensue, at least during the morning. Attentions this afternoon turn to a plethora of US economic data including Core PCE Price Index m/m, Employment Cost Index q/q, Personal Spending m/m, Personal Income m/m, Chicago PMI and CB Consumer Confidence at which point we may see a bit more movement in GBP/USD.