GBP/USD teases 1.3800 amid risk aversion, FOMC eyed
- GBP/USD remains depressed below 1.3800 on Wednesday.
- US dollar resilient ahead of FOMC minutes, disappointing ISM data.
- The sterling looks for some support on the reopening optimism.
GBP/USD treads water on Wednesday’s Asian trading session. The pair fell sharply from the high of 1.3898 and touched the intraday low at 1.3773.
At the time of writing, GBP/USD is trading at 1.3794, down 0.04% for the day.
The US Dollar Index (DXY), which tracks the performance of the greenback against its six major rivals, stands at 92.55 with minute gains. Investors await FOMC minutes release for an update on the Fed's future guidance on next policy steps. A more hawkish tone could underpin the demand for the US dollar.
The Institute of Service of Supply Management (ISM) Non-Manufacturing PMI came at 60.1 in June compared to market forecasts of 63.5. The downbeat reading limited the gains for the greenback.
The US benchmark 10-year bond yields fell to 1.353% as investors react to the potential of slower economic growth.
On the other hand, the sterling is gaining some traction as the UK is ready to lift all coronavirus restrictions on July 19, subject to final approval on July 12.
Meanwhile, UK’s Ambassador Lindsay Croisdale-Appleby said that it would be a challenge that the Belfast Good Friday Agreement survives to make sure that the intuitions in Northern Ireland (NI) stay strong. EU-UK spat over post-Brexit agreement on NI remained a pain area for the sterling.
GBP/USD additional levels