- Pound among worst performers as Bailey’s comments offset Haldane’s perspective.
- GBP/USD heads for the lowest close since mid-April.
The recovery of the GBP/USD pair was short-lived, and after being unable to hold above 1.3800, it dropped to 1.3760, reaching the lowest level since mid-April. It holds near the lows, under pressure.
The US dollar remains strong in the market ahead of Friday’s NFP report. The DXY trades at the highest in months, around 92.50. At the same time, the pound is among the worst performers on Thursday, affected by earlier comments from Bank of England’s Andrew Bailey.
Economic data in the US showed a larger-than-expected decline in June’s ISM manufacturing index to 60.6 and a fresh pandemic low in initial jobless claims. The numbers had no impact on markets. Consensus point to an increase of 690K in jobs during June for Friday’s NFP. The dollar received support on Thursday from higher US yields. Traders now await US employment data that could affect monetary policy expectations.
Regarding the pound, analysts at Rabobank point out the pound is likely to draw some influence from forthcoming releases of May monthly GDP, production data, and CPI inflation. They added the Bank of England make it clear “last month’s upward surprise on the CPI inflation measure was not enough to significantly increase anxiety levels amongst policy-setters (with the exception of Haldane who has now departed the Bank), GBP bulls will likely to be more reluctant to be moved by another firm report.”
Technical levels
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