GBP/USD jumps towards 1.4200 as BOE’s Haldane hints at tapering
- GBP/USD catches fresh bids on BOE Haldane’s taper talk.
- Subdued DXY and Treasury yields underpin the spot.
- All eyes remain on Brexit talks and US CPI report.
GBP/USD is advancing towards 1.4200, catching a fresh bid on the hawkish comments from the Bank of England (BOE) Chief Economist Andy Haldane.
Haldane said that the "UK economy is going gang-busters" and, therefore, the central bank “may need to start turning off the stimulus tap.”
The cable jumped nearly 30-pips in a knee-jerk reaction to the BOE policymaker’s comments, further helped by a broadly subdued US dollar and the Treasury yields.
The GBP bulls shrug off the Brexit deadlock and uncertainty over the UK reopening. The UK PM Boris Johnson sticks to his plan of reopening the economy on June 21 despite the latest reports of likely delay due to the concerns over the Indian delta covid strain.
Meanwhile, the UK and European Union’s (EU) Brexit negotiators are due to meet later today, in the last minutes efforts to resolve the Northern Ireland (NI) protocol issue.
However, the main event risk for markets this week remains the US CPI report, which will throw fresh cues on the Fed’s next monetary policy action amid rising inflationary risks.
Thus, the US dollar remains on the defensive, contemplating the next moves heading into Thursday’s key event.
GBP/USD technical levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
