- GBP / USD is holding on to small daily gains on Wednesday.
- Private sector employment in the US increased less than expected in July.
- The US Dollar Index remains near 92.00 ahead of US ISM data.
The pair GBP/USD it continues to trade in a relatively tight range on Wednesday, but manages to stay in positive territory. At time of writing, the pair was up 0.18% on the day at 1.3939.
USD struggles to find demand after ADP data
Data released by the Automatic Data Processing Research Institute (ADP) on Wednesday showed that employment in the US private sector increased by 330,000 in July. This reading fell short of the market expectation of 695,000 by a wide margin and made it difficult for the dollar to gain strength. At the moment, the US dollar index posts small daily gains at 91.98.
Later in the session, the US IHS Markit and ISM services PMI reports will be considered for further momentum. However, ahead of the Bank of England (BoE) monetary policy announcements on Thursday, the GBP / USD reaction is likely to remain silent.
In preview of the BoE event, “there is good reason for the BOE to deliver a cautious message on its super Thursday in August,” said FXStreet analyst Yohay Elam. “That would weigh on GBP / USD, but probably not for long.”
Technical levels
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