GBP/USD Price Analysis: Drops to two-week low, bears await break below 38.2% Fibo. level
The GBP/USD pair drifts lower for the second successive day – also marking the fourth day of a negative move in the previous five – and drops to a nearly two-week low during the Asian session on Wednesday. Spot prices currently trade just below the 1.2900 mark, down 0.15% for the day amid a modest US Dollar (USD), though any meaningful depreciating move seems elusive.
In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, climbed to a two-week high amid an uptick in the US Treasury bond yields. Apart from this, a softer risk tone further benefits the safe-haven buck, though bets for an imminent start of the Federal Reserve's (Fed) rate-cutting cycle in September cap gains. Apart from this, diminishing odds of an August rate cut by the Bank of England (BoE) should act as a tailwind for the British Pound (GBP) and the GBP/USD pair ahead of flash PMIs. Read more...
GBP/USD eases back as markets gear up for data-laden midweek
GBP/USD eased lower on Tuesday to decline one-fifth of one percent as traders buckle up for a hectic midweek market session after a quiet start to the trading week. S&P Purchasing Managers Index (PMI) activity figures are due on both sides of the Atlantic, and further key US data is due throughout the back half of the trading week.
UK PMI activity survey results will kick off Wednesday’s London market session, and investors are broadly expecting a recovery in July’s UK Services PMI. The UK’s Services PMI dipped to a seven-month low of 52.1 in June, and median market forecasts expect a rebound to 52.5. Read more...
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