GBP/USD sustains earlier losses within the Asian session.
Higher US Treasury yields lift the demand for the USD.
Initial Jobless claims, Gross Domestic Product (GDP) eyed.
The fresh buying opportunities within the US dollar keep GBP/USD on the sting on Thursday. The pair opened above the 1.4120 marks but did not sustain, albeit retreated quickly to the touch the intraday low at 1.4092.
At the time of writing, the GBP/USD pair is trading at 1.411, down 0.06% for the day.
The major theme remains the central banks and therefore the inflationary pressure. The US benchmark 10-year yields rose to 1.58% with 0.43% gains for the day.
Investors dumped riskier assets in anticipation of rising interest rates after Fed Vice Chair Richard Clarida said that the financial institution could handle the inflationary pressure avoiding the country’s economic recovery. The twist came in when he added that the Fed should start talking about tapering within the next coming meetings.
The latter comment deviated from the sooner officials’ dovish stance that boosted the US Treasury yield, having the cascading effect on the US dollar which rose from its lowest level in four months.
On the opposite hand, the sterling remained the second-best performing G-10 currency, after CAD on upbeat economic data and a faster vaccination program. The re-opening of the economy further boosted cable optimism. The Bank of England (BOE) Governor Andrew Bailey, echoed an identical tone over the interest rates and asset purchasing program.
Lately, the Brexit woes remain a risk factor for the performance of the cable. As per the newest report, the united kingdom construction sector could face delays post-Brexit certification scheme. this might derail the economic recovery pace within the country.
Meanwhile, serious allegations were made by UK Prime Minister Boris Johnson’s close aide Dominic Cummings, who quit the Boris administration last November. He criticized the govt heavily as he quoted” When the general public needed us most the govt failed”. He was extremely critical of the Prime Minister’s efforts in handling the crisis.
This cites the interior rifts within the UK political arena , which impacted sterling negatively.
As for now, investors turn their attention to the US economic docket with Gross Domestic Product (GDP), durables , Corporates Profits, and Initial Jobless Claims on tap.
The data will help in gauging the market sentiment, as higher reading could influence the Fed rate hike decision.
GBP/USD Additional Levels
Today last price 1.4116
Today Daily Change -0.0005
Today Daily Change % -0.04
Today daily open 1.4121
Daily SMA20 1.4051
Daily SMA50 1.3914
Daily SMA100 1.386
Daily SMA200 1.3517
Previous Daily High 1.4176
Previous Daily Low 1.4112
Previous Weekly High 1.4234
Previous Weekly Low 1.4077
Previous Monthly High 1.4009
Previous Monthly Low 1.3669
Daily Fibonacci 38.2% 1.4137
Daily Fibonacci 61.8% 1.4152
Daily Pivot Point S1 1.4097
Daily Pivot Point S2 1.4073
Daily Pivot Point S3 1.4034
Daily Pivot Point R1 1.4161
Daily Pivot Point R2 1.42
Daily Pivot Point R3 1.4224
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