GBP/USD trades with a mild negative bias, holds above a multi-week low set on Tuesday
The GBP/USD pair struggles to capitalize on its modest Asian session uptick to levels just above the 1.2800 mark and turns lower for the third successive day on Wednesday. Spot prices currently trade around the 1.2770-1.2765 region, just a few pips above a nearly four-week low touched on Tuesday.
The US Dollar (USD) reverses an intraday dip that followed the Fitch downgrade of the US government's credit rating to AA+ from AAA and continues to draw support from bets for further policy tightening by the Federal Reserve (Fed). The British Pound (GBP), on the other hand, is weighed down by diminishing odds for more aggressive rate hikes by the Bank of England (BoE), which further contribute to capping the upside for the GBP/USD pair. Read more...
GBP/USD Price Analysis: Cable fades US credit downgrade linked bounce, 1.2750 in the spotlight
GBP/USD reverses the latest Tuesday’s corrective bounce off 1.2750 support confluence by retreating to 1.2780 during the early hours of Wednesday’s Asian session. In doing so, the Cable pair justifies the market’s risk-off mood driven by the US credit rating cut, as well as takes clues from the dovish concerns about the Bank of England’s (BoE).
Apart from the US Dollar’s recent jump, following an initial retreat due to the credit downgrade news, the cautious mood ahead of the US ADP Employment Change and the fears of the UK recession also weigh on the GBP/USD price. Read more...
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