“¢ The USD remains depressed amid firming Fed rate cut expectations.
“¢ Softer US economic data does little to ease the USD bearish pressure.
“¢ UK political and Brexit uncertainties might continue to cap the upside.
Selling pressure around the USD picked up the pace in the last hour and pushed the GBP/USD pair back closer to over one-week tops set in the previous session.
With investors looking past Wednesday’s upbeat ISM non-manufacturing PMI, the US Dollar came under some renewed selling pressure amid firming expectations that the Fed will cut interest rates in 2019 and assisted the pair to regain positive traction on Thursday.
Meanwhile, the post-ECB spike in the shared currency was also cited as one of the factors denting the already weaker sentiment surrounding the greenback, which deteriorated further following a slight disappointment from the second-tier US economic releases.
Data released on Thursday showed that the US trade deficit narrowed a bit to $50.8 in April but was slightly higher than $50.7 expected. Adding to this, initial weekly jobless claims remained unchanged at 218K during the week ended May 31 as against expected dip to 215K.
Despite the positive move, the pair remained capped below mid-1.2700s as market participants still seemed reluctant to buy the Sterling amid persistent UK political uncertainty and growing fears of a no-deal Brexit.
Technical levels to watch
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