GBP/USD consolidates below 1.3900 as US Treasury yields rebounds
- GBP/USD halts the previous two day’s strong gains on Wednesday.
- US dollar stands strong on the mixed US economic data, Fed eyed.
- The sterling maintains its strong stance on Brexit and fall in COVID-19 cases.
GBP/USD treads water on Wednesday in the Asian trading session on Wednesday. The pair confides in a very narrow trade band with no meaningful traction.
At the time of writing, GBP/USD is trading at 1.3883, up 0.05% for the day.
The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades near 92.50, with 0.01% gains. Investors expected a sooner than expected rate hike from the Fed in today’s meeting.
The mixed economic data adds little to the USD valuations. The US New Home Sales data fell for the straight third month. The US Durable Goods Orders rose 0.8% in June, much below the market expectations of 3.2% growth.
On the other hand, the sterling remained in higher spirit after the Bank of England (BOE) official Gertjan Vlieghe said on Monday that the central bank should keep its stimulus possibly until 2022.
Meantime, the EU pauses legal action against the UK over the Northern Ireland (NI) protocol.
As for now, investors await the Fed’s Interests Rate Decision to gauge the market sentiment.
GBP/USD additional levels