- GBP/USD is trimming gains on Wednesday although it remains above 1.3200.
- The pound loses ground amid USD strength and vanishing hopes od a Brexit deal.
Sterling’s reversal from two-month highs above 1.3300 has found support at 1.3190 during the US trading session. on Wednesday, to return above 1.3200. The pair, however, remains negative on daily charts, weighed by a broadly stronger US dollar and vanishing hopes of a Brexit deal.
The pound pulls back against a stronger USD
The US dollar is trading higher against its main rivals on Wednesday, with the market adjusting the optimism about the impact of a COVID-19 vaccine and assessing details like production and distribution issues while coronavirus infections continue escalating in the US and Europe.
Beyond that, previous hopes of an imminent Brexit agreement have been hit by the comments of an Irish minister affirming that the negotiators are likely to miss their mid-November target to clinch a trade deal.
The greenback seems to have brushed off the safe-haven status of the last months and is trading higher on Wednesday, in parallel with the main equity indexes. The higher US Treasury bond yields might be the main cause to explain that trend shift, as the yield of the 10-year Treasury note has surged to 0.97%.
Technical levels to watch
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