The GBPUSD pair climbed to a daily high of 1.3958 in the early trading hours of the American session but failed to maintain its bullish momentum. With the US Dollar regathering its strength, the pair reversed its direction and was last seen posting small daily losses at 1.3901.
Earlier in the day, the depressing labor market data from the US weighed on the greenback. The Automatic Data Processing (ADP) Research Institute reported on Wednesday that the private sector employment increased by 330,000 in July, missing analysts’ estimate of 692,000 by a wide margin.
Even Though the US Dollar Index fell to a daily low of 91.90 after the ADP data, hawkish comments by Fed Vice Chair Richard Clarida helped it regain its traction. Clarida said that he can certainly see the Fed announcing tapering later in the year and added that he expects conditions for the Fed to start raising interest rates toward the end of 2022. Currently, the DXY is up 0.25% on the day at 92.30.
On Thursday, the Bank of England (BoE) will announce its monetary policy decisions.
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