- GBP/USD has gotten fresh offers on Wednesday amid the appearance of some dollar selling.
- The boost in risk appetite is proving to be a key factor undermining the safe-haven dollar.
- US Durable Goods Orders, which are positive, could not provide a significant boost.
- The focus remains on the FOMC policy decision, which will be released later in the US session.
The pair GBP/USD maintains its offered tone during the early American session and is little moved in reaction to US macro data. The pair, however, has pulled back a few pips from the daily high and is now seen trading just above of 1.2050.
A nice recovery in global risk sentiment – as evidenced by a generally positive tone around equity markets – is undermining the safe-haven US dollar and offering GBP/USD support. For their part, dollar bulls seem unimpressed and ignored better-than-expected US economic data.
Monthly data released by the US Census Bureau showed US durable goods orders rose 1.9% in July, far exceeding expectations for a 0.4% decline. Orders excluding transportation items also beat consensus estimates, posting 0.3% growth for the month.
The data eased concerns about an economic slowdown, although it failed to provide a significant boost to the dollar or the GBP/USD pair. Traders seem reluctant and prefer to wait on the sidelines before the expected FOMC monetary policy decision, to be announced later in the US session.
The US central bank is expected to raise interest rates by 75 basis points to control inflation. However, market participants are divided on the need for more aggressive policy tightening. Therefore, the focus will be on Fed Chairman Jerome Powell’s policy statement and comments during the post-meeting press conference.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
