GBP/USD has reversed its direction and reclaimed 1.1800 in the European session, erasing its daily losses along the way. The modest dollar weakness ahead of the highly-anticipated Jackson Hole Symposium seems to be helping the pair edge higher.
The US Dollar Index (DXY) began Wednesday on a firmer footing before retreating towards 108.50, down 0.15% at the latest, as equities pared recent losses amid a lack of too-strong US data.
Related- GBP/USD Extends Gains above 1.1800
Also exerting downside pressure on the greenback’s gauge versus the six major currencies was the indecision among the latest Fedspeak and market chatters.
Looking forward, the second version of the US Q2 GDP will join the US Personal Consumption Expenditure (PCE) for the stated period to decorate the calendar. However, major attention will be given to Jackson Hole for fresh impulses.
It’s worth noting that Morgan Stanley recently mentioned in its analytics that they continue to see the weak growth outlook weighing on GBP.