- Dollar recovery loses strength after US data
- ECB decision gives some strength to the pound.
The GBP/USD is falling modestly on Thursday and still retaining most of the weekly gains, supported by a weaker dollar. The pair climbed hours ago to 1.1645, the highest since September 13, and recently posted daily lows at 1.1547.
For hours the GBP/USD has been trading in ranges between 1.1600 and the 1.1550 area. This comes as the dollar tries to recover some of the ground lost on Wednesday, but remains weakened by a further decline in Treasury yields.
US GDP grew at a 2.6% annualized rate in the third quarter, a smaller-than-expected rise in durable goods orders in September, and a jump in continued jobless claims. The dollar lost strength after these figures.
For its part, the pound shows more stable after days of high political intensity in the United Kingdom. Rishi Sunak, already had his first full day as prime minister. Budget definitions were postponed.
The euro weakened in the market after the decision of the European Central Bank. Following this the EUR/GBP plunged from 0.8675 to 0.8620, the lowest since October 17. This decline helped support the pound.
Technical levels
Source: Fx Street
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