- GBP/USD continues to slip down in the early European session.
- A combination of factors weighs on sterling's performance.
- Uptick in US treasury yields underpins the US dollar demand.
The appreciative move in the US dollar keeps GBP/USD under pressure on the last trading day of the week. The pair broke the broader consolidating range of 1.4100-1.4220 on Monday and continued to skid lower.
At the time of writing, GBP/USD trades at 1.3901, down 0.13% for the day.
The US Dollar Index (DXY), which tracks the performance of the US dollar stands higher at 91.92 with 0.05% gains. The greenback moves in tandem with the US 10-year benchmark yields, which read at 1.51%.
Investors digested the Fed hawkish inflation forecast and the timing of the probable two rate hikes. Market participants shrugged off the weaker Initial Jobless Claims data as the growth prospects overshadowed the poor readings.
On the other hand, the sterling remained unfazed by the reports that the extended lockdown could end two weeks earlier on July 5.
On the economic side, UK inflation rose more than expected in May to the highest level since July 2019 and above the Bank of England’s (BOE) target of 2.0%.
Meanwhile, UK relations with the EU worsens over the Northern Ireland protocol. The UK has asked EU to extend the grace period for chilled meat exports, as it will be banned at the end of June under the terms of the NI Brexit agreement. This, in turn, sour the sentiment around the cable.
As for now, investors are closely watching for the UK Retail Sales data to gauge the market sentiment.
GBP/USD additional levels
|Today last price||1.3897|
|Today Daily Change||-0.0025|
|Today Daily Change %||-0.18|
|Today daily open||1.3922|
|Previous Daily High||1.4009|
|Previous Daily Low||1.3896|
|Previous Weekly High||1.4191|
|Previous Weekly Low||1.4073|
|Previous Monthly High||1.4234|
|Previous Monthly Low||1.3801|
|Daily Fibonacci 38.2%||1.3939|
|Daily Fibonacci 61.8%||1.3966|
|Daily Pivot Point S1||1.3876|
|Daily Pivot Point S2||1.3829|
|Daily Pivot Point S3||1.3763|
|Daily Pivot Point R1||1.3989|
|Daily Pivot Point R2||1.4055|
|Daily Pivot Point R3||1.4102|