GBP/USD sits near daily high, lacks bullish conviction and remains below
GBP/USD managed to defend and attract buying in the vicinity of the 1.3200 mark on Monday..
Hawkish Fed expectations, rebounding US bond yields continued underpinning the greenback.
The GBP/USD pair continued gaining traction through the mid-European session and shot to a fresh daily high, around the 1.3285 region in the last hour.
Having defended the 1.3200 mark, the GBP/USD pair witnessed some short-covering move on the first day of a new week and reversed a major part of Friday’s decline back closer to the YTD low. The UK’s move to gran a new batch of licenses for French ships seeking to work in British waters was seen as a sign of progress on a broader trade agreement. This, in turn, was seen as a key factor that extended some support to the British pound.
The intraday buying picked up pace in imminent interest rate hike by the BoE at its upcoming policy meeting on December 16. That said, the UK-EU standoff over how to regulate trade in Northern Ireland held back bulls from placing aggressive bets. This, along with sustained US dollar buying, might keep a lid on any meaningful upside for the GBP/USD pair amid absent relevant market-moving economic releases.
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