GBP / USD stalls at 1.3800 thanks to strong US dollar

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  • The British pound is advancing despite the strength of the US dollar across the board.
  • Brexit: David Frost said: “The problem with the EU proposals on Northern Ireland is that they don’t go far enough.”
  • BoE: I’m in no rush to raise rates – Tenreyro.

The pair GBP/USD It stalled at 1.3800 for the second day in a row, unable to make a sustained break above the figure, but in recent hours, it bounced off the daily low at 1.3739, trading at 1.3768 during the American session at the time of writing.

The risk-sensitive British pound is making progress, despite the strength of the US dollar across the board. Inflation concerns seem a bit easy as major US heavy-tech companies like Facebook, Alphabet, Apple and Facebook will release Q3 earnings, keeping market sentiment upbeat. .

Meanwhile, the US dollar index that tracks the dollar’s performance against a basket of pairs is up 0.16%, to 93.79, while the US 10-year Treasury yield is down nearly three basis points, to the 1,627%.

Brexit troubles appear to keep GPB / USD price action within the 1.3700-1.3800 range. On Monday, David Frost, Britain’s top Brexit negotiator, said the EU proposals would not offer the “trade liberalization” they would like to see, according to Reuters. He further added: “The problem with the EU proposals on Northern Ireland is that they do not go far enough.”

BoE: I’m in no rush to raise rates – Tenreyro

Earlier in the day, Silvana Tenreyro, an outside fellow at the Bank of England, said she needed more time to judge how the leave scheme would affect the labor market, indicating she was in no rush to raise rates. Furthermore, he added that inflationary pressures from rising energy prices are likely to fade quickly.

Tenreyro, still one of the moderate members of the BoE, took a different tone from that portrayed by Governor Andrew Baily, who said the BoE “will have to act” to curb inflationary pressures.

According to Brown Brothers Harriman in a note to clients, expectations of a tightening of the Bank of England remain high. “The fourth-quarter takeoff comes at a full price, along with four more increases over the course of 2022,” he said in the note.

On the other hand, in the US, the lockdown period for members of the Federal Reserve would leave investors, with a good number of lawmakers in favor of the bond phase-out announcement for the November meeting.

On the US economic agenda, the Dallas Fed manufacturing index rose to 14.6, higher than the 6.8 predicted by economists. Additional details from the release showed that the employment index rose to 28.3 from 26.3, and the new orders index rose to 14.9 from 9.5.

Technical levels

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