The Pound/Dollar pair is trading near the 1.4100 level.
Market participants are waiting for a steady break below the strong support against the background of the general strengthening of the US currency and the growth of Brexit fears. European Union officials remain concerned about the standoff with the UK, this time over the Northern Ireland Protocol. Since mid-May, the pound/dollar pair has been trading in a very narrow range, but it seems that the British currency has lost the strength of its momentum and may break through the lower limit of the corridor.
Since the beginning of the week, the pair's volatility has remained low and is unlikely to increase significantly until Wednesday evening, when the results of the Fed meeting will be announced. Citibank sees the tactical potential for the dollar's growth, as the regulator is sure to maintain its position on monetary policy. The growth of consumer inflation in the US by 5% did not change the opinion of the Central Bank, which continues to argue about the temporary nature of the rise in prices. However, if the Fed's reaction surprises with its rigidity, the markets ' reaction will be strong. Otherwise, the dynamics of assets trading against the US currency will be restrained.
Forex trading. Pound/Dollar GBP/USD forecast for today, June 15, 2021
The forecast assumes a decline in the Pound/Dollar exchange rate to the price values of 1.4080, 1.4050 and 1.4030.