GBP/USD fluctuates during the day, with traders waiting for Powell to take the stand on the sidelines..
The GBP/USD slightly advanced in the North American session, staying a comeback after piercing below the 1.1800 figure for the fourth time in the week, but a shift in sentiment augmented the appetite for the Sterling. Factors like China’s stimulus to the housing and construction markets underpinned worldwide stocks.
The GBP/USD reached a daily low of around 1.1783 during the Asian session before climbing towards the day’s high at 1.1864. Nevertheless, it retreated towards current exchange rates. At the time of writing, the GBP/USD trades at 1.1817, registering marginal gains of 0.18%.
Before Wall Street opened, the US Department of Commerce reported that the US Gross Domestic Product for Q2 improved, by -0.6%, higher than estimates of -0.8%, and above the advanced reading. At the same time, the Bureau of Labor Statistics (BLS) revealed that Initial Jobless Claims for the week ending on August 20 were lower than foreseen, at 243K from 253K.
What to watch
The US economic calendar will release the Fed’s favorite measure of inflation, July’s PCE, headline, and core figures before Wall Street opens. Later, the US Federal Reserve Chair Jerome Powell will hit the stand.
GBP/USD Price Analysis: Technical outlook
The GBP/USD trades below the midline of a parallel descending channel, pierced earlier in the day but retraced, trading below August’s 24 daily close. Even though the major trades above its opening price, a daily close below 1.1795, would pave the way for a re-test of the YTD lows at around 1.1716. Otherwise, a break above 1.1878, the high of the week, will pave the way towards 1.1900.
EUR/USD erases daily gains as it fails to reclaim parity
EUR/USD has lost its traction after having tested parity during the American trading hours and retreated below 0.9970. The US Dollar Index, which fell on hawkish Fed commentary earlier in the day, erased its daily losses, forcing the pair to stay on the backfoot.
GBP/USD retreats toward 1.1800 as dollar recovers
GBP/USD has failed to preserve its bullish momentum and retreated toward 1.1800 during the American trading hours. The selling pressure surrounding the dollar faded away with investors refraining from committing to large positions ahead of the Jackson Hole Symposium.
Gold clings to modest daily gains above $1,750
Gold continues to trade in positive territory above $1,750 in the second half of the day on Thursday. Although the dollar stays resilient against its major rivals, the 1% decline seen in the benchmark 10-year US Treasury bond yield helps XAU/USD hold its ground.