On Monday, the GBP/USD currency pair experienced minimal movement, fluctuating in a tight channel near 1.2600. The subdued trading activity was largely due to a cautious market mood, which lent support to the US Dollar, thereby restricting the GBP/USD pair's upside potential. Despite some market participants hoping for more pronounced price action, the day's trading remained notably subdued.
Contributing to the thin trading volumes, financial markets in the United States were closed in observance of Presidents' Day. The long weekend ensured that trading action in the forex market stayed limited, with many investors opting to remain on the sidelines. This closure significantly affected trading dynamics, as US-based traders and institutions paused activities until the resumption of operations on Tuesday.
Simultaneously, the EUR/USD pair remained under modest bearish pressure, trading below the 1.0500 mark on Monday. The lack of major economic data releases and the holiday lull contributed to this restrained market environment. With both currency pairs showing limited movement, traders were left waiting for more significant market catalysts later in the week.
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