The GBPUSD pair hovers around 1.3865-70 during early Thursday as traders expect the key UK data for a fresh indication of the trend. The Cable price dropped to a monthly low the previous day but struggles to carry the rebound amid a lack of major data/events in Asia.
Conversations over US-China diplomatic talks and a lack of key updates on covid-19, as well as US stimulus front, not to forget pre-data caution, also challenge direct moves of the GBPUSD pair.
Within the UK Health Minister Sajid Javid confirmed, as per The Guardian, that the fully vaccinated British people above 18s need not self-isolate. However, Brexit woes, signaled by the UK Express, challenges the GBPUSD buyers. “The EU appears to be readying a final ultimatum to the UK as the bloc’s patience is “wearing thin” over a command paper to renegotiate the Northern Ireland Protocol, a senior MEP (Member of European Parliament) has said,” per the news.
Against this framework, US 10-year Treasury yields add 1.7 basis points (bps) to 1.342% whereas US stock futures remain sluggish around record top by the press time.
On the economic data today, monthly prints of the UK GDP, Manufacturing Production and Industrial Production, as well as the preliminary readings of the second quarter (Q2) GDP, will direct immediate GBP/USD moves. Given the upbeat expectations from the scheduled figures, the cable may extend the latest rebound as a positive outcome backs the BOE hawks. However, the US Producer Price Index (PPI) for July and the Weekly Jobless Claims, coupled with Fed speech, will also be important to watch.
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