GBP/USD draws support from a modest USD downtick

GBP/USD trades with modest gains around 1.2600 on softer USD, lacks bullish conviction

The GBP/USD pair gains some positive traction on the first day of a new week and moves away from its lowest level since June 13, around the 1.2550-1.2545 region touched on Friday. Spot prices retake the 1.2600 round-figure mark during the Asian session and draw support from a modest US Dollar (USD) downfall.

China on Sunday announced that the levy charged on stock trading will drop from 0.1% to 0.05% from August 28 – marking the first reduction since 2008 – to boost the struggling market. This, in turn, helps revive investor confidence, which is evident from a generally positive tone around the equity markets and leads to some profit-taking around the safe-haven Greenback, especially after the recent rally to a nearly three-month high. This, along with hawkish remarks by Bank of England (BoE) Deputy Governor Ben Broadbent, underpins the British Pound and provides a modest lift to the GBP/USD pair. Read more…

GBP/USD Price Analysis: Cable recovery looks to regain 1.2600 on hawkish BoE bias

GBP/USD picks up bids to print mild gains at the lowest levels since early June, up 0.10% intraday near 1.2585 amid the initial hours of Monday’s Asian session. In doing so, the Cable pair consolidated the biggest weekly loss since mid-July amid holidays in the UK, as well as backed by the hawkish comments from a Bank of England (BoE) official.

That said, BoE Deputy Governor Ben Broadbent appeared hawkish while speaking at the annual Jackson Hole Symposium on Saturday per Reuters. The policymaker, however, couldn’t ignore economic pessimism for the UK. Read more…