- GBP/USD refreshes daily highs in the Asian session.
- Risk-aversion underpins the demand for the US dollar.
- Investors keep their eye on UK Claimant Count and US Housing data.
The GBP/USD pair is trading with a modest gain in the Asian session. The pair remains in a steady range following the previous two sessions, after testing the daily lows at 1.4000 on May 13.
At the time of writing, the GBP/USD pair is trading at 1.4153, up 0.14% on the day.
The strength in cable, owing to the optimism on the reopening of the economy amid faster vaccination ahead of its counterparts, keeps the GBP/USD pair constructive near the higher levels. Indoor dining, cinemas, schools, and universities were back to normal. The ban on international flight was also lifted under phase 3 of the economic reopening plan on Monday.
The economy is expected to show the effect of easing restrictions in the coming months. However, the UK PM Boris Jhonson remains concerned about the final unlocking phase scheduled for June 21 as the Indian corona variant takes hold in part of England.
Moving on, the UK Brexit Minister, David Frost expressed his concerns over regulation between Northern Ireland and the rest of the US as well as the firms' finance issues with the EU. The Brexit chaos remains a pain area for the cable lately.
On the other hand, the subdued tone around the US dollar amid lack of buying interest pressurized the US dollar index (DXY) at 90.20 near the multi-month low.
The disappointing retail sales data on Friday did not go over well with the market. Fed officials remain concerned over the uneven economic recovery and shrug off any inflationary pressure that aligned with the Fed’s commitment towards the ultra-easy monetary policy.
As for now, investors turn their attention to the UK Claimant Count Change for April, Unemployment Rate, and Average earnings data . On US economic data, Building Permits and Housing Starts will be in focus to gauge the market sentiment.
GBP/USD Additional Levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.