GBP/USD trades above 1.3400, eyes on BOE rate hike clues
- GBP/USD trades at 1.3429 during Asian hours on Monday, supporting last week's gains.
- Investors are eyeing BoE's Haskel Speech and September's ILO Unemployment Rate.
- An increase in unemployment numbers is a sign of a worsening economic situation, which will push the BoE to loosen its monetary policy.
The GBP/USD pair is trading around 1.3430 level during Asian hours on Monday, supporting last week's gains, as the investors look for signs of a Bank of England (BOE) rate hike.
The currency pair hit its yearly lows at 1.3358 on Thursday before rebounding on the last day of the week.
The pair finds some support from the comments by the European Commission's Maros Sefcovic. He said that there had been a welcome change in British Brexit minister David Frost's tone in talks over post-Brexit trade with Northern Ireland.
In addition to this, concerns over stability in Northern Ireland, with London threatening to implement Article 16—a move that would suspend parts of the deal that have prevented a hard border Ireland's island, could undermine cable's recovery attempts.
The US dollar index, which tracks the greenback against a basket of currency, holds its ground above 95.00. The US Treasury yields are also solidifying after last week's price action at 1.57%. The US Michigan Consumer Index came in at a 10-year low, which is in line with inflation and rate hike expectation. This has bolstered the greenback to its current position, the highest rise in seven weeks.
The cable eyes for Bank of England (BoE) Jonathan Haskel's speech, which is due on Monday. But Tuesday's UK Claimant Count Change, October, Britain's ILO Unemployment Rate and Earnings data will further provide impetus. Trades will also keep a close eye on the Fedspeak in the week ahead.
GBP/USD technical levels
Author
Sounava Ray Sarkar
Independent Analyst
Sounava has been working as a Journalist since 2012. He has worked with several reputed media organizations in various capacities before settling as a writer and news editor for business and technology segments.
