rsday. The pair holds steady just above the mid-1.2500s through the early North American session, awaiting a fresh catalyst before the next leg of a directional move.
In the meantime, a modest US Dollar recovery from over one-week low acts as a headwind and keeps the GBP/USD pair below the 1.2600 round-figure mark. Signs of stress at another US regional bank, PacWest Bancorp, sparks fears of a full-blown banking crisis in the US, which, along with looming recession risks, temper investors' appetite for riskier assets. This is evident from a generally weaker tone around the equity markets and helps revive demand for the safe-haven Greenback.
The USD bulls, however, seem reluctant to place aggressive bets in the wake of the Federal Reserve's less hawkish outlook. It is worth recalling that the US central bank raised interestby 25 bps on Wednesday and opened the door for a possible pause in June.
On the economic data front, the US Initial Weekly Jobless Claims rose more than expected, to 242K during the week ending April 29 from the previous week’s 229K and fails to provide any meaningful impetus. Traders now seem to have moved to the sidelines and keenly await the closely-watched US monthly jobs data on Friday. The popularly known
report will play a key role in influencing the USD price dynamics and determine the near-term trajectory for the GBP/USD pair.
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Source: FXStreetNews - 🏆 14. / 72 Read more »
Source: FXStreetNews - 🏆 14. / 72 Read more »