Finance

GBP/USD remains cautious below 1.3800 on USD weakness

  • GBP/USD edges higher on Tuesday in the Asian session.
  • US Dollar Index remains below 93.00 following the previous session’s decline.
  • The sterling capitalizes gains on the fresh weakness in the US dollar.

GBP/USD edges higher on Tuesday’s Asian trading session. The pair opened lower but managed to trade higher on broad-based USD selling.

At the time of writing, GBP/USD is trading at 1.3774, up 0.12% % for the day.

The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades below 93.00 with 0.08% losses post FOMC Chairman Jerome Powell comments at the Jackson Hole symposium.

Fed Chair hinted the central bank will likely begin tapering before the end of the year, although it did not imply a direct increase in interest rates.

The US 10-year Treasury yields continue to drift lower for the third consecutive day and trades near their one-week low of around 1.27%.

The US Pending Home Sales dropped 8.5% on yearly basis in July amid limited supply constraints.

On the other hand, the sterling battles with Brexit chaos, the pessimism surrounding the EU-UK ties over the Northern Ireland (NI) protocol remain a challenge for the British pound.

As for now, investors turn their attention to the UK Bank of England (BOE) Consumer Credit, and US S&P/Case-Shiller Home price to gauge market sentiment.

GBP/USD additional levels

 

View more information: https://www.fxstreet.com/news/gbp-usd-remains-cautious-below-13800-on-usd-weakness-202108310341

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