GBP/USD hovers around 1.3380 ahead of fresh impetus from the Russia-Ukraine war
|- GBP/USD is oscillating in a range of 1.3376-1.3403 amid fewer headlines on geopolitical issues.
- US President Joe Biden imposes sanctions on Russia that will cut its technology imports.
- The DXY looks to rebound after skidding near 96.91 amid profit booking.
The GBP/USD pair has rebounded from the lows of 1.3273 and is oscillating in a narrow range of 1.3376-1.3403 as investors are waiting for fresh headlines from the Russia-Ukraine tussle. The cable has been hammered by the market participants on Thursday after a full-scale invasion by Russia. US President Joe Biden holds Russia seldom responsible for the death and destruction in Ukraine after an active Russian military activity in the Donbas region in eastern Ukraine.
The expectations of an imminent war turned real on Thursday after the Kremlin unleashed the most destructive war since 1945. The headlines of military troops, explosions, and gunfire amid the Russian attack on Ukraine kept the investors on their toes. A risk-off impulse heightened and investors started pouring their funds into safe-haven assets.
Meanwhile, US President has imposed more sanctions on Russia that may put deeper cuts on their technology imports. As per the new sanctions Sberbank and four other major Russian financial institutions — VTB Bank, Novikombank, Otkritie, and Sovcombank will be blocked.
US President Joe Biden said in a statement that "As we squeezed Russian’s access to finances and technology for strategic sectors of its economy, it can degrade its industrial capacity for years to come," "We estimate that the sanctions will cut off more than half of Russia's high tech imports, which will limit their ability to continue to modernize their military," as per Reuters.
The US dollar index (DXY) looks to rebound after the profit-booking that has sent the DXY lower towards 96.91 in the late American session, which has brought some bids in the pound.
Apart from the Russia-Ukraine war headlines, investors will also focus on GfK Group Consumer Confidence, which will be reported by Britain’s Growth from Knowledge on Friday.
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