GBP/USD consolidates near 1.3700 on firmer US dollar
- GBP/USD trades cautiously on Friday in the initial Asian session.
- US Dollar Index rebounds above 93.00 after the previous two session’s consolidative moves.
- The sterling falls on the sour risk sentiment, Brexit chaos.
GBP/USD treads water on the last trading day of the week in the initial Asian trading session. The pair hovers in a very close trading band with no meaningful traction.
At the time of writing, GBP/USD is trading at 1.3702, up 0.02% for the day.
The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades at 93.07 with 0.26% gains amid general risk-on mood.
Investors stayed invested in the US Dollar after Fed’s taper talks picked up pace ahead of the Jackson Hole Synopsys. Fed’s official hawkish comments supported the narrative of the central bank timing of tapering talks.
Dallas Federal President Robert Kaplan remained confident on the straight of the US economy and asserted that the central bank should start tapering in October. Fed’s Bullard said that US inflation was substantially higher and expected to finish asset purchase by March 2022.
On the other hand, the sterling lost its ground on risk aversion among investors ahead of the US Fed Chair Jerome Powell speech, despite the fall in COVID-19 cases.
In the latest development, the UK industry leaders reported that Britain's post-Brexit supply chain crisis could hamper "Christmas celebrations" and continued to cause food shortages until 2022.
As for now, traders wait for the slew of economic data: US Personal Income and Spending data, Goods Trade Balance, Personal Consumption Expenditure (PCE) Index and Fed Chair Jerome Powell speech to gauge the market sentiment.
GBP/USD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
