- 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|
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.