- GBP/USD has witnessed a minor pause while advancing towards 1.1400.
- The risk-on impulse is still solid and S&P500 is holding gains.
- Fitch Ratings have revised the BOE sovereign outlook to Negative from Stable.
The GBP/USD pair has sensed a minor selling pressure while attempting to hit the immediate hurdle of 1.1400 in the Tokyo session. Investors are continued with their longs in risk-perceived currencies. The 10-year US Treasury yields have recovered the decline and have scaled above 3.75%. While, the S&P500 is not ready to surrender gains and is sustaining at elevated levels.
The US dollar index (DXY) has dragged firmly after failing to cross the immediate hurdle of 111.00. The DXY is expected to remain on the tenterhooks as investors are awaiting the release of the US Nonfarm Payrolls (NFP) for making informed decisions. As per the expectations, the US economy has added 250k jobs vs. the prior release of 315k.
It is worth noting that the US economy has been operating at full employment levels for the past several months. Therefore, space for creating new jobs is extremely low. Apart from that, the Average Hourly Earnings data holds significant importance. The labor cost index data is expected to remain subdued as projections display a decline of 10 basis points (bps) to 5.1% on an annual basis.
On the UK front, investors are worried that poor economic fundamentals could drag the cable to parity. Analysts are divided, according to a Reuters poll in which the outcomes were 3.6% strong British battered pound in a year and parity.
The rollback of the memorandum of historic tax cuts by Finance Minister Kwarteng saved the UK economy from unveiling the most significant increase in borrowing since 1972. But what is haunting the pound bulls now is the negative outlook on Bank of England's (BoE) Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) by Fitch Ratings. The revised outlook to Negative from Stable, affirming AA- could vigorously impact the recent pound rally.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD tumbles toward 0.6350 as Middle East war fears mount
AUD/USD has come under intense selling pressure and slides toward 0.6350, as risk-aversion intensifies following the news that Israel retaliated with missile strikes on a site in Iran. Fears of the Israel-Iran strife translating into a wider regional conflict are weighing on the higher-yielding Aussie Dollar.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu, WIF token’s show of strength was not just influenced by Bitcoin price reclaiming above $63,000.
Israel vs. Iran: Fear of escalation grips risk markets
Recent reports of an Israeli aerial bombardment targeting a key nuclear facility in central Isfahan have sparked a significant shift out of risk assets and into safe-haven investments.