It's all gone quiet since the Fed and BOE unveiled their latest thoughts 20 March
I needn't have rushed back really given the distinct lack of action in the last few sessions as traders and algos wait for the next lead.
USD retreat on Wednesday post-Fed, GBP advance Thursday post-BOE but it's been oh so quiet since huh ?
Politics still in the frame as a prime mover so we'll hope for some action this week but it seems no one really prepared to take on quiet markets any more.
Like I've said before the days of traders creating some volatility at these times seems long gone with robots only providing a reactive, not pro-active, response.
So we'll wait for news bombs, and for GBP traders tomorrow's keenly awaited UK inflation data.If it comes in under expectations then we'll see some GBP losses again but similarly a stronger reading will sustain recent gains given the BOE's inflation-dependent blinkered stance right now. Ignoring sluggish wage growth and rising household debt is dangerous imho but hey it's good to get a clear out too. Getting rid of the weeds helps plants grow stronger.
GBPUSD 1.2398 nudging a little higher again. Let's see if we can clear recent highs.
