Further range bound is likely in GBP/USD for the time being, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
Key Quotes
24-Hour View: We expected GBP to trade between 1.2670 and 1.2740 yesterday. We did not anticipate a spike in volatility as GBP rose to 1.2780, dropped to 1.2674 and then closed at 1.2740 (+0.30%). After a sharp but short-lived swing, the outlook for GBP is mixed. Today, GBP is likely to continue trading in an isolation between 1.2680 and 1.2780.
Next 1-3 weeks: Our update from Wednesday (05 Jul, spot at 1.2715) is still valid. As highlighted, for the time being, GBP is likely to consolidate and trade in a range of 1.2630/1.2800.
