On Wednesday, the GBP/USD exchange rate remained below 1.3800.
The US dollar is holding up well ahead of the FOMC minutes, despite poor ISM data.
On the reopening optimism, the pound seeks some support.
On Wednesday’s Asian trading session, the GBP/USD pair is treading water. From a high of 1.3898, the pair dropped rapidly to an intraday low of 1.3773.
GBP/USD is trading at 1.3794 at the time of writing, down 0.04 percent on the day.
The US Dollar Index (DXY), which gauges the greenback’s performance versus six major rivals, is currently trading at 92.55, with minor gains. Investors await the release of the FOMC minutes for an update on the Fed’s future policy recommendations. The demand for the US dollar could be bolstered by a more hawkish tone.
In June, the Institute of Supply Management’s (ISM) Non-Manufacturing PMI was 60.1, compared to market expectations of 63.5. The dollar’s advances were capped by the negative reading.
As investors react to the possibility of weaker economic growth, the benchmark 10-year bond yields in the United States dipped to 1.353 percent.
Sterling, on the other hand, is gaining ground as the UK prepares to abolish all coronavirus restrictions on July 19, pending final permission on July 12. Meanwhile, UK Ambassador Lindsay Croisdale-Appleby stated that it would be a challenge to ensure that the Belfast Good Friday Agreement survives in order for Northern Ireland’s (NI) intuitions to remain strong. The disagreement between the EU and the UK over a post-Brexit accord on Northern Ireland remained a source of pain for the pound./n
