GBP/USD refreshes monthly lows toward 1.3700 on USD strength
- GBP/USD edges lower on Thursday in the Asian session.
- US Dollar Index continues to stay strong on risk aversion among investors.
- The sterling struggles with inflation data suggest BOE is in no hurry to raise the interest rate.
GBP/USD edges lower on Thursday’s Asian trading session. The pair opened higher albeit retreated quickly to touch the intraday low of 1.3713
At the time of writing, GBP/USD is trading at 1.3719, down 0.26 % for the day.
The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades at 93.45 with 0.33% gains in a possible effect after the Fed’s minutes of meeting reassurance that the central bank would begin asset tapering in 2021.
Further, investors rushed to safe-haven assets in view of the rapid spread of the delta variant and its impact on the global economic recovery.
On the other hand, the sterling continued to struggle against the greenback. The Consumer Price Inflation (CPI) rate fell to 2.0% in July on yearly basis, below the market expectations of 2.3%. The softer reading eased the rate hike expectations from the Bank of England (BOE) in the near term.
In two surveys conducted by Lloyds Bank Plc and IHS Markit in a poll of 1,500 companies Britain’s exit from the EU and the coronavirus pandemic adding inflationary pressure, which in turn slowing down the prospects of UK economic recovery.
As for now, investors turn their attention to the US Initial Jobless Claims to gauge the market sentiment.
GBP/USD additional levels