- US dollar consolidates gains versus European currencies, amid higher yields.
- Pound modestly lower, the outlook for GBP/USD points to further losses.
The GBP/USD pair dropped further during the American session and printed a fresh low at 1.3068. As of writing, it trades at 1.3070 down 65 pips about to post the third decline in a row, as it continues to retreat from the multi-year high it reached last Friday at 1.3515.
Market volatility remains low amid a stronger US dollar supported by higher US yields. The worst performers are European currencies, among them is the pound.
BoE and Trump’s impeachment
In the UK, on Thursday the Bank of England (BoE) will announce its decision on monetary policy. No change is expected. Analysts at TD Securities point out that the pullback in GBP remains one of the major drivers across G10 currencies. They consider the BoE shouldn’t generate too much excitement. “We still think the medium-term outlook for GBP is positive, leaving room to renege on breaks below 1.30.”
Regarding the greenback, with no critical economic data due on Wednesday, attention is on the US Congress. House lawmakers are on the final debate before voting to impeach President Donald Trump. Democrats have the number to pass the impeachment, without the need for Republican votes.
Technical levels
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