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GBP/USD[1] snaps the range from the previous week following a bulk of data coming out of the U.K. & U.S. economy, and fresh rhetoric from Bank of England (BoE) and Federal Reserve officials may largely influence the exchange rate over the coming days as market participants weigh the outlook for monetary policy. Recent price action keeps the near-term outlook tiled to the downside as the Relative Strength Index (RSI) continues to flash an extreme reading, with the momentum indicator still trading in oversold territory.

Image of daily change for major currencies


Image of daily change for GBPUSD

The limited reaction to the 197K expansion in U.K. employment suggests the figures were largely overshadowed by the 31.2K rise in claims for unemployment benefits, with the mixed prints for Average Weekly Earnings likely to keep the Bank of England (BoE) on the sidelines at the next meeting on June 21 as ‘inflation is projected to fall back slightly more quickly than in February.’ In turn, BoE Chief Economist Andrew Haldane may largely tame expectations for an imminent rate-hike as the Monetary Policy Committee (MPC) member is scheduled to speak later this week, and a slew of dovish rhetoric may generate headwinds for the British Pound[2] as Governor Mark Carney and Co. appear to be in no rush to further normalize monetary policy.

Image of Fed Fund Futures

In contrast, the 0.3% expansion in U.S. Retail Sales paired with the unexpected uptick in the Empire Manufacturing survey is likely to keep the Federal Open Market Committee (FOMC) on course to deliver higher borrowing-costs over the coming months as it instills an improved outlook for growth and inflation. As a result, a growing number of FOMC

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currensceneFLOGO WHTsquareThough not the oldest form of currency, some form of shell money appears to have been found on almost every continent. The shell most widely used worldwide as currency was the shell of Cypraea moneta, the money cowry.

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