- GBP / USD tries to bounce but is still vulnerable.
- The USD advances while European equities rebound.
- Brexit and the fuel crisis in the United Kingdom limits the rebound of the pair before Bailey and Powell.
The pair GBP/USD it is seeing good moves in both directions at the start of the European session on Wednesday. At the time of writing, the pair is attempting a quick bounce from fresh eight-month lows at 1.3505, now trading at 1.3540, virtually unchanged on the day.
The pair has halted its steady recovery from the Asian session and has encountered new sales at the start of the European session, due to renewed concerns about Evergrande, a possible US government shutdown and the current UK fuel problem.
Risk aversion has reactivated the demand for safe haven of the US dollar, prompting the USD bulls to regain their bullish momentum, despite the pullback in Treasury yields.
Nevertheless, With European equities rebounding, investors are once again gleeful, supporting the currency pair’s strong rally. The British FTSE 100 added 0.70% on the day, while the European euro stoxx 50 advanced almost 1%.
Looking ahead, it remains to be seen whether GBP / USD manages to sustain the rebound as the Fed’s optimistic expectations will continue to play in favor of yields and the dollar. In addition, investors will closely monitor the Fed chairman’s speeches, Jerome Powell, and the governor of the BoE, Andrew Bailey, for a new commercial impulse.
GBP / USD technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
