GBP/USD remains on the defensive around 1.1600 amid modest USD uptick, ahead of US GDP – by hareshmenghani GBPUSD Fed Bonds GDP Currencies
September 13 touched earlier this Thursday. The pair remains on the defensive through the early European session and is seen flirting with the 1.1600 round figure.
An intraday uptick in the US Treasury bond yields assists the US dollar to recover from over a one-month low, which, in turn, acts as a headwind for the GBP/USD pair. That said, speculations that the Federal Reserve might soften its hawkish stance - amid signs of a slowdown in the US economy - might hold back the USD bulls from placing aggressive bets. Adding to this, a generally positive tone around the equity markets could cap the safe-haven buck and continue lending some support to the major.
The British pound, on the other hand, is underpinned by the appointment of the new UK Prime Minister Rishi Sunak. Market players see Sunak as someone who can bring stability to the recent volatile markets and keep the British economy stable. Sunak also pledged to fix mistakes by the Truss administration and lead the country out of the current economic crisis, boosting investors' confidence.