- GBP/USD near the intraday low of 1.3320.
- Brexit worries and BOE members’ comments cut the three-day winning streak in GBP/USD.
- The US dollar is in a strong pullback from record lows.
- Friday’s NFP is critical for the US dollar.
GBP/USD was trading down 0.17 Percent at 1.3328 today ahead of the London opening. The pair extended the losses from yesterday as the bearish comments from the BOE members added to the dollar strength and Brexit worries. The final reading of the UK Services PMI and the initial estimates of US ISM Services PMI is awaited by the traders today, along with BOE head’s probable comments.
EU’s Chief Brexit Negotiator Michael Barnier yesterday showed flexibility on fisheries demand after criticizing that the UK hasn’t engaged yet in the vital Brexit conditions. At the same time, a lobby group from Ireland asked for the inclusion of Brexit preparations on the November budget.
BOE Governor Andrew Bailey and other board members gave mixed signals regarding inflation control. Bailey has said the inflation expectations are pretty stable, while Deputy Governor Dave Ramsden and policymaker Gertjan Vlieghe weren’t so optimistic and indicated readiness to ease if required. So, Bailey comments due today at 14:00 GMT will be under the radar.
UK Services PMI for August expected 60.1 would come ahead of the US ISM Services PMI forecasted at 57.
Media reports suggest Chancellor Rishi Sunak has started to worry about the public finances but refrained from commenting on tax raises by saying that his first task is to drive jobs and recovery.
The US dollar continued its rally despite a weak ADP Employment Change and left the GBP/USD to struggle near the multi-month highs. The chances of touching early-August lows are present, primarily if the upcoming data supports bullishness in the US dollar.
