On Tuesday, GBP/USD reached around 1.2670 but struggled to maintain its upward momentum later in the day. By Wednesday’s European session, the pair was trading below 1.2650.
While technical indicators suggest a possible bearish trend, sellers may hesitate to push the pair significantly below 1.2600 unless there is a significant fundamental development.
The US Dollar remained strong against other major currencies on Tuesday, supported by market caution and slightly better-than-expected Durable Goods Orders data for February.
Early Wednesday, the UK’s FTSE 100 Index showed a modest decline, while US stock index futures indicated a potential rise of 0.3% to 0.4%. If US equity indexes open higher and gain bullish momentum, the USD might struggle to attract safe-haven demand.
The US economic calendar lacks significant data releases that could impact the USD’s valuation. Federal Reserve Governor Christopher Waller, known for his previous comments suggesting the Fed’s reluctance to cut interest rates hastily, is scheduled to speak during the American session.
© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.
© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.