Sterling trades in its tightest range in weeks as markets await key central bank meetings with no clear directional bias.
The British pound remains nearly unchanged near 1.3300 in New York trading, confined to a 30-pip range, the narrowest in weeks. This compression occurs ahead of Wednesday’s Federal Reserve decision and Thursday’s Bank of England meeting, which includes a new Monetary Policy Report.
GBP/USD has retreated roughly 2.5 cents from its mid-July peak near 1.3550, trading below both its 50-day and 200-day EMAs, which converge just under 1.3400. The orderly decline suggests positioning rather than panic, with the pair failing to reclaim the 1.3300 level it defended for three weeks.
The dollar’s strength drives the exchange rate, with the Dollar Index at a one-month high near 101.50. Sterling’s lack of volatility reflects market caution as investors await fresh policy signals from both central banks.