In a cautious market environment, the US Dollar continues to find support despite limited upside potential. On Monday, the GBP/USD currency pair fluctuated near the 1.2600 mark in the second half of the day. Meanwhile, trading volumes remained thin as US financial markets observed a long weekend due to Presidents' Day, resulting in subdued trading action.
With US markets closed for Presidents' Day, trading activity was notably reduced, contributing to a quiet session across financial markets. This holiday-induced lull limited movement in currency pairs, with the EUR/USD experiencing modest bearish pressure and trading below 1.0500 on Monday. The subdued trading environment reflects broader market caution, which has bolstered the US Dollar.
The ongoing market sentiment has kept the upside of currency pairs restrained. Market participants exhibited a cautious approach, influencing the performance of major currency pairs, including the GBP/USD and EUR/USD. Despite fluctuating near key levels, these pairs have shown limited movement due to low trading volumes and the absence of US market participation.
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