GBP/USD is fluctuating within a narrow range during the Asian trading session before dropping to the 1.2100 area in the European morning. The long-term technical outlook indicates that the downward trend remains intact.
Over the weekend, the United Arab Emirates (UAE) called for an emergency meeting of the United Nations Security Council to discuss the situation in Gaza, demanding an "immediate ceasefire to ensure the safety of civilians and civilian infrastructure."
It seems that the risk sentiment has improved following this development on Monday, with the UK's FTSE 100 index rising over 0.5% in European trading. Additionally, US stock index futures traded positively, indicating a higher opening on Wall Street.
However, the US dollar (USD) remains resilient against its counterparts, making it difficult for GBP/USD to gain traction. In the event of a sharp increase in risk aversion later in the day, the USD may give up some of its gains. The US economic calendar does not have any high-impact data releases on Monday.
Towards the end of the week, both the Federal Reserve (Fed) and the Bank of England (BoE) will announce their monetary policy decisions. Investors may choose to stay on the sidelines ahead of these events, as they could have significant implications.
Over the weekend, the United Arab Emirates (UAE) called for an emergency meeting of the United Nations Security Council to discuss the situation in Gaza, demanding an "immediate ceasefire to ensure the safety of civilians and civilian infrastructure."
It seems that the risk sentiment has improved following this development on Monday, with the UK's FTSE 100 index rising over 0.5% in European trading. Additionally, US stock index futures traded positively, indicating a higher opening on Wall Street.
However, the US dollar (USD) remains resilient against its counterparts, making it difficult for GBP/USD to gain traction. In the event of a sharp increase in risk aversion later in the day, the USD may give up some of its gains. The US economic calendar does not have any high-impact data releases on Monday.
Towards the end of the week, both the Federal Reserve (Fed) and the Bank of England (BoE) will announce their monetary policy decisions. Investors may choose to stay on the sidelines ahead of these events, as they could have significant implications.
