GBP/USD sold-off into Manchester terror attack, eyes inflation hearings

The GBP/USD pair remained under pressure sub-1.30 handle towards the late-Asian trades, after the spot met fresh sellers overnight on reports of the Manchester terror attacks, while investors brace for the UK inflation report hearings due later in Europe.

Sterling risk: will the terror attack delay the UK elections scheduled for June 8th?

Amid increased political uncertainty across the US and UK, latest reports of the Manchester Arena explosion, treated as a terror attack, fuelled a fresh risk-off wave and knocked-off the pound across the board.

An official statement from the Greater Manchester Police says “so far 19 people have been confirmed dead, with around 50 others injured”. Also, the UK PM Theresa May expressed her grief towards the incident, stating that they will work to get full details of the Manchester blast.

Over the last hours, the major stalled its downward spiral and entered a phase of bearish consolidation, as investors assess the implications of the terror blast on the upcoming UK general elections called in by the UK PM May in a bid to get a better Brexit deal. Markets fret that the attack could delay the UK elections, as the event remains just fifteen days away.

Moving on, the next risk event for cable remains the UK inflation report hearings scheduled in the session ahead, following the release of the UK public sector net borrowing data. Meanwhile, the US flash manufacturing PMI and new homes sales will be reported in the NA session.

GBP/USD Levels to consider            

Valeria Bednarik, Chief Analyst at FXStreet noted: “From a technical point of view, the pair holds a neutral stance, with the price barely above its 20 SMA, and the Momentum indicator heading nowhere around its mid-line, while the RSI also consolidates but around 56. The pair will likely retain the neutral stance ahead of the UK election, with a limited downward scope on persistent dollar's weakness.”