Finance GBP USD was largely flat in early trading on Monday, around 1The 2700 level is moving in a narrow range up and down. While the short-term technical outlook fails to provide directional clues, investors will be keeping an eye on the policy statements of the Federal Reserve and the Bank of England (BoE) later in the week, which could help the pair break out of its current range. Cautious market sentiment has supported the dollar's resistance to its rivals, making it difficult for GBP USD to accumulate bullish momentum. Investors are increasingly concerned about the potential economic impact of escalating geopolitical tensions in the Middle East.
Some recent events have also triggered a risk-off mood in the market. According to reports, the British sea ** boat HMS Diamond shot down a Houthi drone over the Red Sea. Meanwhile, three U.S. soldiers were killed and dozens injured in a drone attack on a U.S. base near Jordan's border with Syria on Sunday. If safe-haven funds dominate financial markets in the second half of the day, it could put downward pressure on GBP USD.
In other news, a survey conducted by Bank of America Citi and polling firm Yougov showed that the UK public's expectations for inflation over the next twelve months rose from 4.0 in October2% fell to 39% and 3 in December5%。Long-term inflation expectations fell slightly to 34%。Although this data did not trigger a noticeable market reaction, it is still one of the factors that investors are paying attention to.
Overall, GBP USD is still in ** mode and lacks a clear directionality. Policy statements from the Federal Reserve and the Bank of England later in the week could give the pair fresh momentum. Investors will continue to monitor the geopolitical situation and economic data for more clues on market movements.