GBPUSD Price: Pound Trades Flat Against Dollar As Week Ends

The GBPUSD currency pair was trading almost flat at the time of writing after erasing some of its earlier gains. The pound had gained ground against the dollar earlier today after the latest UK GDP data showed that the country’s economy had expanded by 0.1% in November.

However, the pair had erased most of its gains at the time of writing as the dollar gained some impetus following the release of the upbeat preliminary University of Michigan consumer sentiment data, which came in at 64.6, beating analysts’ consensus estimates of 60.8.

As I mentioned yesterday, most of the major currencies paired against the US Dollar have been trading sideways for most of the week and are about to end the week trading in the same sideways range that has been in place since Monday. 

However, not all is rosy in the UK, despite the country’s top stock index, the FTSE100, trading near its all-time highs earlier today. While many expect the Fed to start implementing lower interest rate hikes and maybe stop raising rates in the coming months, the situation for the pound is less certain. 

The UK is facing a significant labour market crisis as workers across the country strike, demanding better pay and working conditions. The strikes couldn’t have come at a worse time as many companies struggle to profit amid a cost of living crisis.

Furthermore, the weakness of the UK economy indicates that the country might not handle more rate hikes from the Bank of England. However, more rate hikes might be needed to lower the record-high inflation in the country.  

As the week ends, most traders and investors will look forward to next week to see if there shall be some significant moves on the major pairs, including the GBPUSD currency pair. 

*This is not investment advice. 

The GBPUSD price chart.

The GBPUSD currency pair was trading almost flat at the time of writing after erasing some of its earlier gains.