GBP/USD contains above 1.3750 amid USD weakness, Bailey’s comments
- GBP/USD attempts to push higher on the first trading day of the week.
- US Dollar Index trades below 94.00 on improved risk sentiment.
- Hawkish BOE, Brexit headlines and general risk-on mood influence sterling’s prospects.
GBP/USD accumulates gains on Monday. The pair posted gains for the fourth-straight session. At the time of writing, GBP/USD is trading at 1.3759, up 0.10% for the day.
The US Dollar Index, which tracks the performance of the greenback, trades below 94.00 despite the higher US benchmark 10-year Treasury yields. Investors remain optimistic following the upbeat US Retails Sales data, which jumped 0.7% in September, far above the market estimates of a 0.2% decline. The University of Michigan’s Consumer Sentiment fell 71.4 in October below the market forecast of 73.1. The mixed readings weighed on the greenback.
On the other hand, the British pound gained following the hawkish comments from the Bank of England (BOE) Governor Andrew Bailey. He said that the central bank is ready to act if there is a significant rise in medium-term inflation. Further, he acknowledged that there are some supply-side concerns. In addition to that, the caution following the UK and EU new round of negotiations on the Northern Ireland deal after London demanded extensive changes in the deal, limits the gain for the British pound.
As for now, traders keep their focus on the GBP Rightmove House Price Index, US Industrial Productions data to gauge 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.
