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Flash: GBP/USD to remain range bound in short-term given lack of drivers – Investec

FXstreet.com (Barcelona) - After yesterday’s US Consumer Confidence figure hit a five year high, it was little surprise that there was a move up in US stocks during New York hours with the dollar being bought against most of its G10 counterparts.

According to Lee McDarby, Corporate Treasury at Investec, “The GBP/USD looked to test the 1.5000 level and with little in the way of data drivers looks set to remain rather range bound today. Moreover, the dollar positive release yesterday did little for safe haven assets as risk appetite shifted away from the concerns surrounding potential change in Fed policy.”

Most noticeably the US two-year bond auction attracted the fewest bids since 2011. The USD $35bn sale of two-year debt had a bid to cover ratio of 3.04, this compared to an average of 3.72 over the last 10 auctions. We have a $35bn five-year auction today and a USD29bn seven year auction tomorrow so these should be monitored closely as we seek further direction in both GBP/USD and GBP/EUR.

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