GBP/USD remains guided toward 1.3750 amid broad USD strength
- GBP/USD continues its fall for the fourth consecutive day.
- US Dollar Index up for the second day in a row amid hawkish Fed members.
- The sterling losses ground on BOE stance, Brexit chaos.
The buying pressure around the US dollar keeps GBP/USD edgy in the early European session on Thursday. After testing the low of 1.3726 in the overnight session, GBP/USD recovered toward 1.3780.
At the time of writing, GBP/USD is trading at 1.3764, down 0.05% for the day.
The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, continues to exhibit its strength and trades near 92.70 with 0.06% gains.
Dallas Fed Reserve Bank President Robert Kaplan said he would like to taper as earliest as possible while taking note of the negative impact of COVID-19 resurgence on travel, hospitality, and leisure. St. Louis Fed President James Bullard said Fed should move with its plan to reduce its asset purchase, despite a slowdown in job growth.
On the other hand, the sterling remains under renewed selling pressure after the Bank of England (BOE) Governor Andrew Bailey said that the UK’s economy is slowing down amid supply chain disruptions and staff shortages.
Additionally, Michael Saunders, one of the nine members of the MPC quoted on Wednesday that BOE could be forced to raise interest rates next year if inflation remains persistently higher.
Furthermore, business houses in Ireland fret over rising prices due to the Brexit-led costs.
As for now, investors turn their attention to the US Initial Jobless Claims to trade fresh trading impetus.
GBP/USD additional levels