- GBP/USD continues to grind lower on the last trading day of the week.
- Rising energy prices, worker shortages, stagflation worries keep sterling weaker against majors.
- Broad-based US dollar rebound keeps pressure on GBP/USD.
GBP/USD edges lower on Friday morning in the early European session. The pair opened higher but failed to sustain the momentum. As of writing, GBP/USD is trading at 1.3457, down 0.12% for the day.
The movement in GBP/USD is primarily sponsored by the gains in the greenback. Buoyed by the Fed’s tapering expectations and on the optimism after the US government shutdown looms fades away pushed demand for the US dollar owing to its safe-haven appeal. The US Dollar Index (DXY), which tracks the performance of the greenback against its six major rivals, trades above 94.30.
On the other hand, the sterling remained on the backfoot as Investors remained nervous about the UK rising inflation concerns. The “stagflation “ fear due to the higher inflation, dismal economic growth and high unemployment were failed to subside even after the recent data suggested that UK economic growth for Q2 was revised higher to 5.5% against the market expectations of 4.8%.
As for now, traders are bracing up for the UK Markit Manufacturing Purchasing Managers Index (PMI), US Personal Consumption Consumption and Expenditure data, and ISM Manufacturing PMI to take fresh trading impetus.
GBP/USD additional levels
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