Pound Sterling outperforms amid renewed concerns on Fed’s independence
The Pound Sterling (GBP) recovers strongly to around 1.3465 against the US Dollar (USD) during the European trading session on Monday after a weak opening around 1.3390. The GBP/USD pair bounces back as the US Dollar corrects sharply, following the opening of a criminal investigation on Federal Reserve (Fed) Chair Jerome Powell over mismanaging funds in the reconstruction of Washington’s headquarters.
As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.3% lower near 98.80. The DXY has retraced after revisiting the monthly high near 99.25. Read more…
GBP/USD: Chance to test the major support at 1.3370 – UOB Group
Even without a significant increase in downward momentum, Pound Sterling (GBP) may yet test the major support at 1.3370. In the longer run, GBP could decline to 1.3370, potentially reaching 1.3340, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
24-HOUR VIEW: “GBP fell to a low of 1.3418 last Thursday. When GBP was at 1.3440 in the early Asian session on Friday, we indicated that ‘there is a chance for GBP to retest the 1.3420 level’. However, we pointed out that ‘the major support at 1.3400 is unlikely to come under threat’. Read more…