GBP/USD Cuts Part of the In-day Profits, Yet Receives Bid Beyond 1.2000 Due to Weak USD

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Fresh buying orders located the GBP/USD pair Today (Tuesday). This has brought some recovery from yesterday’s dip to a 3-days low. Nevertheless, GBP/USD has retraced a few pips Downwards from its daily height in the first part of the European trading period. As of now, the pair is being bought and sold beyond the 1.2000 price level.

Various factors triggered new selling pressure around the USD and can be seen as offering some assistance to the GBP/USD pair. Worldwide risk feeling gets some relief following the hint given by the Chinese authorities that Coronavirus restrictions will be loosened, even as infection cases continue to rise. This is seen as the equity market begins to show signs of stability. Additionally, anticipations that the Federal Reserve will reduce the speed of policy tightening, supply more headwind to the USD.

GBP/USD Cuts Part of the In-day Profits, Yet Receives Bid Beyond 1.2000 Due to Weak USD

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This month’s (November) FOMC gathering minutes that were published last week strengthened market bets for a lower 50 bps interest rate hike come next month (December). This has ushered in a new downside time for United States Treasury bonds, and as well weighs down the USD. Meanwhile, the GBP keeps getting strength from growing bets that the BOE will increase interest rates. Having said this, a gloomy outlook for the United Kingdom economy is acting as a headwind for the Pound and keeps restricting significant upside moves for the GBP/USD.

As of today, there is no market-moving data due to emerging from the United Kingdom. Meanwhile, the United States docket will be featuring the Conference Board’s Consumer Confidence Index. Besides this, speeches from Catherine Mann a member of the BOE MPC, and governor Andrew Bailey will be much anticipated for, as it will give a new direction to the GBP/USD pair.

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