GBP/USD strengthens as the US Dollar loses ground

GBP/USD climbs above 1.3500 as US Dollar weakens ahead of ISM Services PMI

GBP/USD gains some ground after registering modest gains in the previous session, trading around 1.3510 during the Asian hours on Wednesday. The pair edges higher as the US Dollar (USD) struggles ahead of the US ISM Services Purchasing Managers’ Index (PMI) and JOLTs job openings due later in the day.

Fed Governor Stephen Miran said on Tuesday that the US central bank should cut interest rates aggressively this year to sustain economic momentum. Meanwhile, Minneapolis Fed President Neel Kashkari, a voter on the Fed’s rate-setting committee, cautioned that the unemployment rate could “pop” higher. Read more…

GBP/USD consolidates around 1.3500; looks to US macro data for fresh impetus

The GBP/USD pair oscillates in a narrow range, around the 1.3500 psychological mark during the Asian session on Wednesday, and for now, seems to have stalled the previous day’s retracement slide from its highest level since September 18. Moreover, the fundamental backdrop seems tilted in favor of bullish traders and suggests that the path of least resistance for spot prices is to the upside.

The US Dollar (USD) preserves the overnight gains, though it lacks bullish conviction on the back of dovish US Federal Reserve (Fed) expectations and ahead of a host of key macroeconomic indicators. Apart from this, the prevalent bullish sentiment across the global equity markets undermines demand for the safe-haven Greenback, which, in turn, is seen as a key factor acting as a tailwind for the GBP/USD pair. Read more…

GBP/USD slides below 1.3550 as US Dollar rebounds despite soft US PMIs

The Pound Sterling (GBP) retreats on Tuesday after reaching a daily high of 1.3567 as the US Dollar (USD) stages a recovery despite posting weaker Purchasing Managers Index (PMI) data, and neutral Federal Reserve (Fed) officials’ remarks. GBP/USD trades at 1.3519, down 0.15% at the time of writing.

Recently released US data by S&P Global revealed that economic activity is weakening, though at a moderate pace. The December Services PMI was 52.5, down from November’s 52.9, while the Composite PMI index came at 52.7 for the same period, down from 53 registered in the previous month. Read more…