- GBP/USD trades cautiously on Friday in the initial Asian session.
- US Dollar Index rebounds above 93.00 after the previous two session’s consolidative moves.
- The sterling falls on the sour risk sentiment, Brexit chaos.
GBP/USD treads water on the last trading day of the week in the initial Asian trading session. The pair hovers in a very close trading band with no meaningful traction.
At the time of writing, GBP/USD is trading at 1.3702, up 0.02% for the day.
The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades at 93.07 with 0.26% gains amid general risk-on mood.
Investors stayed invested in the US Dollar after Fed’s taper talks picked up pace ahead of the Jackson Hole Synopsys. Fed’s official hawkish comments supported the narrative of the central bank timing of tapering talks.
Dallas Federal President Robert Kaplan remained confident on the straight of the US economy and asserted that the central bank should start tapering in October. Fed’s Bullard said that US inflation was substantially higher and expected to finish asset purchase by March 2022.
On the other hand, the sterling lost its ground on risk aversion among investors ahead of the US Fed Chair Jerome Powell speech, despite the fall in COVID-19 cases.
In the latest development, the UK industry leaders reported that Britain's post-Brexit supply chain crisis could hamper "Christmas celebrations" and continued to cause food shortages until 2022.
As for now, traders wait for the slew of economic data: US Personal Income and Spending data, Goods Trade Balance, Personal Consumption Expenditure (PCE) Index and Fed Chair Jerome Powell speech to gauge the market sentiment.
GBP/USD additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.