- The pound is under pressure after weaker-than-expected UK data.
- The dollar strengthens as US yields hit new multi-year highs.
- Wall Street turns lower again as the FOMC meets.
The pair GBP/USD reaches levels below 1.2000 for the first time since March 2020. The pound remains under pressure even as market participants expect a rate hike by the Bank of England on Thursday.
The pound weakened on Tuesday after UK jobs data. Brexit concerns and also the EUR/GBP rally breaking out of a multi-day range, hitting one-year highs, also weighed on the pound.
In contrast, the dollar remains firm pending the Fed’s decision on Wednesday. US yields are at multi-year highs as expectations for a 75 basis point rate hike rise. DXY gains 0.20% and trades at 105.40, the highest level since December 2002.
Source: Fx Street
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