GBP/USD catches fresh bids on Wednesday amid the emergence of some USD selling.The risk-on impulse is turning out to be a key factor undermining the safe-haven USD.
The GBP/USD pair maintains its bid tone through the early North American session and moves little in reaction to US macro data. The pair, however, has retreated a few pips from the daily high and is now seen trading just above the mid-1.2000s.
A goodish recovery in global risk sentiment – as depicted by a generally positive tone around the equity markets – is undermining the safe-haven US dollar and offering support to the GBP/USD pair. The USD bulls, meanwhile, seem rather unimpressed and largely shrugged off better-than-expected US economic data.
The monthly data published by the US Census Bureau showed that Durable Goods Orders in the US increased by 1.9% in July, beating by a big margin expectations pointing to a 0.4% decline. Orders excluding transportation items were also higher than consensus estimates and came in to show a 0.3% growth during the reported month.
The data eased concerns about an economic downturn, though could do little to provide any meaningful impetus to the USD or the GBP/USD pair. Traders seem reluctant and prefer to wait on the sidelines ahead of the highly anticipated FOMC monetary policy decision, scheduled to be announced later during the US session.
EUR/USD stays near 1.0150 after US data, eyes on Fed
EUR/USD continues to fluctuate in positive territory near 1.0150 on Wednesday as investors refrain from committing to large bets ahead of the Fed’s policy announcements. Despite the better-than-expected Durable Goods Orders data, the dollar struggles to find demand.
GBP/USD clings to modest gains around mid-1.2000s
GBP/USD has lost its bullish momentum after having climbed toward 1.2100 earlier in the session. With the dollar having a tough time gathering strength ahead of the Fed’s policy decisions, however, the pair manages to stay afloat in positive territory near 1.2050.
Gold struggles to find direction, trades near $1,720
Gold continues to move up and down in a relatively narrow range near $1,720 in the second half of the day on Wednesday. Although the US data came in better than expected, investors refrain from committing to large positions ahead of the Fed’s policy decisions.
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