GBP/USD reclaims 1.3900 mark post-Powell comments, softer USD

  • GBP/USD continues to move higher consecutively for the past three sessions.
  • US dollar remains persistently below 92.50 after Fed’s dovish stance.
  • The sterling holds the ground on a remarkable drop in COVID-19 cases.

GBP/USD refreshes daily high in the Asian trading session Thursday. The pair extends the previous two day’s gains and recoups the 1.3900 mark.

At the time of writing, GBP/USD is trading at 1.3908, up 0.07% for the day.

The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades below 92.50, with 0.17 losses. Investors ditched the greenback after Fed left the key rates unchanged to record low and the pace of bond-buying in its latest monetary policy.

US Fed Chair Jerome Powell said that the US economy remained far from the dual mandates of stable prices and maximum employment, despite substantial further progress. The comments weighed on the prospects of the US dollar

On the other hand, the sterling gains ground after the reports surfaced that cases of COVID-19 in Britain have dropped for the sixth straight day.

Meantime, the EU pauses legal action against the UK over the Northern Ireland (NI) protocol.

As for now, investors await the US Gross Domestic Data (GDP), Initial Jobless Claims, and Personal Consumption Expenditure Prices to take fresh trading impetus.

GBP/USD additional levels


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