GBP/USD refreshes daily high near 1.3940 on softer USD
- GBP/USD extends the previous session’s upside momentum.
- US Dollar Index slips below 92.00 to trade lower amid mixed economic data and Fed officials views.
- The sterling gains ahead of the BOE meeting due on Thursday.
GBP/USD edges higher on Wednesday’s Asian trading session. The pair bounced quickly from the low of 1.3883 in the overnight session.
At the time of writing, GBP/USD is trading at 1.3934, up 0.14% for the day.
The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades below 92.00 and losses traction in the Asia-pacific timings. Investors rushed to safe-haven assets in view of the rapid spread of the delta variant and its impact on the global economic recovery.
The US Factory Orders jumped 1.5% in July, beating the market forecast by 1%.
Meanwhile, the US Senate committed to formalizing a $1 trillion infrastructure bill, despite some Republicans began complaining about the details of the plan.
On the other hand, the sterling gained from an encouraging end to coronavirus infections in highly-vaccinated Britain.
Meantime, the Brexit red tape held up the supply chain, which could adversely affect the UK manufacturing of goods from cars to fridges. A limiting factor for the pound’s upside momentum.
Investors anticipate Thursday’s Bank of England (BOE) Monetary Policy Committee (MPC) to assess the forward guidance on inflation and interests rates.
As for now, investors await the US ADP Employment Change to take fresh trading impetus.
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.
