GBP/USD plunges below 1.2150 on risk-on ahead of BoE’s decision.

GBP/USD falls for the second straight day, as sellers hold 1.2200, alongside a risk-on impulse.Broad US dollar strength keeps the greenback afloat against most G10 currencies.

Fed officials hawkish commentary bolstered the buck, a headwind for GBP/USD.

The British pound losses ground and falls during Wednesday’s US session by almost 0.26%. Higher US Treasury yields, “hawkish” commentary by Fed officials, and an improvement in sentiment are headwinds for the GBP/USD.

The GBP/USD is trading at 1.2146, down after hitting a daily high at 1.2207, just above the 50-day EMA, but buyers unable to hold, left the major exposed to selling pressure, so the GBP/USD dived towards a daily low at 1.2100.

GBP/USD weighed by risk-on mood, buoyant US dollar.European and US equities are trading in the green. US data from the Institute for Supply Management revealed that July Non-Manufacturing activity, also known as Services PMI, surprisingly exceeded expectations, rose by 56.7, vs. estimations of 53.5, and higher than June’s 55.9. Data showed consumers shifting from goods to services, as the US ISM Manufacturing report depicted signs of slowing down.

Meanwhile, Fed officials remain crossing wires. San Francisco’s Fed Mary Daly commented that hiking 50 bps “would be reasonable to do in September,” but it would depend on data. She added that if inflation remains higher, a “75 bps hike would be more appropriate.” In the meantime, Richmond’s Fed President Thomas Barkin said that he said that recession fears are inconsistent with the labor market growing nearly 400K a month, with a 3.6% unemployment rate.

Earlier, the St. Louis Fed James Bullard commented that he wants to get the Federal funds rate (FFR) to 3.75-4.00% by year’s end while adding, “We’re going to move inflation back to 2% over time.”

AUD/USD founds support on Wall Street’s momentum

The AUD/USD pair trades around 0.6950, trimming early losses and settling in the green. The aussie benefited from substantial gains in US indexes capping the dollar’s demand. Australian Trade Balance coming up next.

AUD/USD News 

EURUSD battles around 1.0160 but at risk of falling

The shared currency is among the dollar’s weakest rivals, harmed by tepid local data. Upbeat US figures, on the other hand, helped the greenback preserve its strength. EUR/USD stable below 1.0200.

EUR/USD News 

Gold retreated further from its weekly peak and fell to an intraday low of $1.754.28. The dollar strengthened amid tepid European data coupled with persistent tensions between China and the US. Stocks struggled to advance on the back of lingering inflation concerns, linked to the latest comments from Fed officials.

Gold News 

Bitcoin: A fundamental line in the sand

Bitcoin price shows fundamentals are likely sidelined from the market until higher targets are reached. Still, a trader understands to always look for opportunities and manage risk accordingly.

Leave a Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s