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The GBP/USD pair remained stable above 1.32 on Monday as the US Dollar weakened following a disappointing ISM non-manufacturing index reading. The pair traded near 1.3240 in a thin session, recovering slightly from last week's 1.3180 low—the weakest level since mid-March. The UK's Easter Monday holiday reduced trading activity, limiting price movement. The ISM services index fell below expectations, signaling slower economic growth and dampening demand for the Dollar.
The Dollar's weakness against the Pound highlights broader market concerns about the US economy and Federal Reserve policy. Traders are monitoring whether the Fed will maintain its dovish stance amid mixed economic data. A weaker Dollar could boost demand for GBP/USD, but the pair's shallow recovery suggests caution among investors. Central bank decisions and upcoming economic data will be critical in determining the pair's direction.
For MENA investors, the GBP/USD movement reflects global macroeconomic risks. The UK's economic resilience compared to the US could influence Gulf portfolio allocations. Traders should watch the Fed's April meeting and UK inflation data for clues on monetary policy shifts. Technical levels around 1.32 and 1.33 may act as short-term support and resistance.
