GBP / USD stable around 1.3595, threatens to break above 1.3600

• The British pound hovers around 1.3600 amid risk-off sentiment.
• Supply shortages and high energy prices reduce market confidence.
• The US Dollar Index hits a one-and-a-half year high, around 94.50.

The GBP/USD It has barely changed 0.01% during the American session, trading at 1.3595 at the time of writing. A negative tone surrounds the sentiment of the market, with the European stock indices losing between 0.13% and 0.56%, with the exception of the IBEX 35, which is trading higher, rising 0.20%. Meanwhile, US indices oscillate between profit and loss, with no clear direction, with the Dow Jones Industrial rising 0.15%, while the S&P 500 and the Nasdaq are down 0.02% and 0.20%, respectively.

Supply shortages and the current energy crisis in Europe and Asia are factors that are keeping investors on the sidelines. The “buy-down” narrative has been kept closed, hurting market sentiment, as traders rush to safe-haven assets like the dollar.

The US dollar index reached a year-and-a-half highs at 94.52

Meanwhile, the US dollar index, which measures the dollar’s performance against a basket of six pairs, rose just 0.04% to 94.40, cutting initial losses by limiting the GBP / USD pair.

On the UK economic calendar, the change in claimant count (month-on-month) for September was -51,100 better than August’s reading of -58,600. At the same time, the ILO Unemployment Rate fell to 4.5%, compared to a previous reading of 4.6%, in line with expectations.

On the other hand, US JOLTS job vacancies fell to 10,439 million from 10,925 million expected. The quit rate rose to a record 2.9% as more people left their jobs, underscoring how salary increases, incentives to sign and many job openings fuel turnover.

The market reaction was subdued, leaving the GBP / USD mainly influenced by market sentiment, the announcement of a gradual reduction in Federal Reserve bonds and the possibility of the Bank of England raising interest rates.

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