- GBP/USD remains muted on Thursday in the Asian session.
- The US Dollar Index is consolidating the recent mild pullback.
- The sterling is struggling amid higher energy prices, dismal economic data.
The GBP/USD pair remains subdued below 1.3600 in the Asian session following the previous session's decline. The pair touched the intraday high at 1.3598 before retreating toward the lower level. At the time of writing, GBP/USD is trading at 1.3580, down 0.01% for the day.
The US Dollar Index (USD), which tracks the performance of the greenback against its six major rivals, trades near 94.30, finding some support from higher US T- bonds yields. The US benchmark Treasury yields soar 1.54% with more than 1% gains. The greenback is unfazed by the reports that US Senate leader Mitch McConnell offered Democrats s deal to raise the US debt ceiling into December to avoid a federal debt default.
Meanwhile, the upbeat economic data underpins the attractiveness of the US dollar. The US private companies added 568k workers in September against the market expectations of 428K along with reports that Washington and Beijing have agreed to hold a virtual meeting before the end of the year.
On the other hand, the British pound continues to grind lower despite the assurance from UK Prime Minister Boris Johnson. He shrugged off Britain’s problem of empty gas stations, worker shortage and supply-side constraints while speaking at the party’s annual conference on Wednesday. The IHS Markit/ CIPS UK Construction Purchasing Managers Index (PMI) declined to 52.6 in September as compared to market expectations of 54.0.
As for now, traders keep their focus on the UK Halifax House Price Index and US Initial Jobless Claims 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 advances to near 1.0750 as risk appetite regains balance
EUR/USD extends its winning streak for the third successful day, trading around 1.0730 during the Asian session on Friday. The risk-sensitive currencies like the Euro gain ground as risk appetite regains balance ahead of US Nonfarm Payrolls.
GBP/USD trades on a stronger note 1.2530, all eyes on US NFP data
The GBP/USD pair trades on a stronger note around 1.2540 amid the softer US Dollar on Friday. The US Federal Reserve Chair Jerome Powell delivered a modest dovish message after the meeting on Wednesday, which weighs on the Greenback.
Gold lacks firm near-term direction, remains stuck in a range ahead of US NFP
Gold price struggles to gain any meaningful traction amid mixed fundamental cues. The Fed’s less hawkish outlook drags the USD to a multi-week low and lends support. Bets for a delayed Fed rate cut and a positive risk tone cap gains ahead of the US NFP.
Solana price pumps 7% as SOL-based POPCAT hits new ATH
Solana price is the biggest gainer among the crypto top 10, with nearly 10% in gains. The surge is ascribed to the growing popularity of projects launched atop the SOL blockchain, which have overtime posted remarkable success.
US NFP Forecast: Nonfarm Payrolls gains expected to cool in April
The United States Employment report will be released by the Bureau of Labor Statistics at 12:30 GMT. The US Dollar looks to employment data after the Fed signaled its intention to hold rates higher for longer on Wednesday.