GBP/USD keeps an eye for 1.3700 amid USD weakness
- GBP/USD extends the previous session’s gains on Thursday in the initial Asian session.
- Lower US T-yields undermine the demand for the US dollar.
- Brexit led-woes, worker shortage, weaker domestic data keep a check on sterling.
The GBP/USD pair extends gains on Thursday. The pair touched a high of 1.3667 in the previous session composed of nearly 100-pips movement. At the time of writing, GBP/USD is trading at 1.3667, up 0.03% for the day.
The US benchmark 10-year Treasury yields recovered to trade at 1.58% before falling to 1.54% on Wednesday following the higher September inflation data and FOMC minutes. The US Consumer Price Index (CPI) was upwardly revised to 5.4% on yearly basis from a previous estimate of 5.3%. Minutes from the Federal Open Market Committee’s September meeting showed the Fed could begin a “ gradual tapering process” by as soon as mid-November. The greenback pared its initial gains and traded lower near 94.00 with fresh losses.
On the other hand, the British pound gains on the USD broad-based selling amid the UK Chancellor, Rishi Suank remarks on supply chain issues during his visit to the US to address G-20 finance ministers. Furthermore, the European Union (EU) offered an “ Express Lane” proposal to solve Northern Ireland Brexit row, which aided the sterling recent gains.
As for now, traders keep their focus on the Bank of England (BOE) Credit Condition Survey, and US Initial Jobless Claims to gauge market sentiment.
GBP/USD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
