GBP/USD attracts some sellers as the US-China trade deal eases US recession fears and boosts the USD.
The US-UK trade agreement and the BoE’s cautious tone support the GBP and limit losses for the major.
Traders now look forward to speeches from BoE officials and FOMC members for some meaningful impetus.
The GBP/USD pair kicks off the new week on a weaker note and reverses a part of Friday's modest recovery from the vicinity of the 1.3200 mark, or over a three-week low. Spot prices trade around the 1.3280-1.3275 region during the Asian session, down 0.20% for the day amid a broadly stronger US Dollar (USD).
The US announced on Sunday that a trade deal with China had been reached following high-stakes trade talks in Switzerland over the weekend. This, in turn, helps to ease market concerns about a recession in the US. Adding to this, the Federal Reserve's (Fed) hawkish pause earlier this month lifts the USD to over a one-month high, which, in turn, exerts pressure on the GBP/USD pair.
Meanwhile, the US and the UK signed a limited trade agreement last Thursday. Moreover, the Bank of England's (BoE) cautious tone, saying that rates will stay restrictive for as long as necessary to ensure inflation risks subside, might hold back traders from placing aggressive bearish bets around the British Pound (GBP) and limit any meaningful depreciating move for the GBP/USD pair.
Even from a technical perspective, the recent range-bound price action witnessed over the past three weeks or so warrants caution before positioning for a firm near-term direction. Investors might also opt to wait for speeches from BoE MPC members and influential Fed officials. Investors will look for cues about the future policy outlook, which, in turn, will provide a fresh impetus to the GBP/USD pair.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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