GBP/USD Holds at 1.3500, Market Awaits US Data
The GBP/USD currency pair moved steadily around the psychological level of 1.3500 during the Asian session on Wednesday. This movement occurred after a mild correction from the highs of recent months. For the time being, the market appears to be holding back while awaiting new catalysts.
The US dollar is still holding back from further weakness, but its gains are limited. Expectations of a more dovish policy from the Federal Reserve and positive sentiment in global stock markets have reduced investor interest in the dollar as a safe haven asset. This condition provides room for GBP/USD to remain strong.
Meanwhile, the pound sterling is supported by easing concerns about the UK budget and a relatively hawkish stance from the Bank of England. The tight interest rate vote in December revealed divergent views within the central bank, especially after UK inflation again surprised.
This combination of factors keeps the short-term outlook for GBP/USD positive. However, market participants are tending to be cautious and are hesitant to take large positions until there is clarity on the direction of US interest rate policy.
Investors' focus is now on the release of US economic data, particularly the Nonfarm Payrolls report on Friday. Prior to this, ADP, ISM Services, and JOLTS data also have the potential to trigger volatility and determine the direction of the GBP/USD's next move. (asd)
Source: Newsmaker.id
