Home Markets GBP / USD retreats from monthly highs to 1.3400 after a series...

GBP / USD retreats from monthly highs to 1.3400 after a series of strong macroeconomic data from the US.

0
GBP / USD retreats from monthly highs to 1.3400 after a series of strong macroeconomic data from the US.
  • GBP / USD has fallen from monthly highs near 1.3440 touched earlier in the session and is trading around 1.3400.
  • Strong US data has weighed on the pair recently after the UK’s Omicron news earlier in the session supported the British pound.

The GBP/USD it has pulled back a bit in recent trading from the previous session’s highs near 1.3440 and recently fell below the 1.3400 level. A series of strong US data releases, including higher-than-expected November underlying PCE report, stronger-than-expected November durable goods orders report, and solid number of weekly initial jobless claims They seem to have injected some force into the dollar, weighing on the pound. But the pair is still trading around 0.4% gains on the day and is still above 1.7% from previous weekly lows around 1.3170.

The pound rallied shortly before Thursday’s European open after a quiet Asian session following news that the UK was unlikely to implement stricter Covid-19 restrictions after Christmas, as had been hinted at earlier in the week. . It appears that after the recent series of positive Omicron studies published mid-week that showed the variant to be significantly smoother than the Delta variant, and amid a plateau of the Omicron transmission rate in London, the developments are have tilted in favor of the government. arguing against the confinement.

Trading conditions are likely to become increasingly subdued given the approaching Christmas and New Year holidays.

According to ING analysts, the weeks before Christmas usually see a low volatility of currencies, although they warn that “this year some seasonal trends will be mixed with the Omicron variant that threatens to force new restrictions and the markets are still processing a full week of key central bank decisions. ”When it comes to GBP / USD, it may be a struggle for the pair to break the monthly highs near 1.3440 that it touched earlier in the session.

Technical levels

.

NO COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Exit mobile version