GBP/USD remained relatively flat during today's session, spending the majority of the day within a 40 pip range. Despite U.S. job numbers improving on Friday there is still concerns over the level of wage growth, which is the main reason why the GBP/USD cross has moved away from its 18 month low and climbed back above $1.51.
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It has been a quiet start to the week in terms of economic number from the UK with nothing being released today. FOMC member Dennis Lockhart is due to speak at the Rotary Club in Atlanta later today and could lead to some movement in the FX market. When members of the Federal Reserve speak in public their comments are often scrutinised as they tend to drop subtle hints about future monetary policy.
Following the release of the Fed's minutes last week we already know an interest rate rise is unlikely to happen before April. However, if Mr Lockhart is upbeat about the state of the U.S. economy and hints at when the Fed will raise interest rates we could see the dollar strengthen.
As I have said on a number of occasions over the past few months it is a two horse race between the U.S and UK's central banks to who will raise interest rates first and at the moment the U.S are drawing clear.
Although it has been quiet start there are a number of key data releases from both sides of the pond throughout this week. I will keep you updated on how they impact exchange rates.
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