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  • GBP/USD bears on top as the price melts from daily tops.  
  • US dollar firms on hawkish Fed minutes send cable lower.  

GBP/USD is trading  flat on the day and is consolidating the drop from overnight on a stronger US dollar.  

Cable fell from a high of 1.4200 to reach a low of 1.4100 as the US dollar gained ground on Wednesday, snapping a four-day losing streak.

The greenback was rallying from multi-month lows following the release of the Federal Reserve’s Federal Open Market Committee (FOMC) minutes that  it would be appropriate “at some point” to discuss tightening its accommodative policy.

“The big thing from the Fed minutes is the mention of beginning of taper talks,” said Chris Gaffney, president of world markets at TIAA Bank in St. Louis. “Any mention of the Fed stepping in and raising rates will have a major impact on the dollar.”

The dollar also benefited from a broad risk-off sentiment, which saw the major US stock indexes slide and cryptocurrencies plunge.

Cryptocurrencies have taken the spotlight, plunging in the wake of regulatory moves from China, which may have added some support to the precious metals markets,  

Bitcoin sank like a stone to its lowest level since January and it has now retraced a 61.8% Fibonacci of the bulk of the 2020-YTD rally. This new sell-off occurred in the wake of China’s decision to ban financial and payment institutions from providing digital currency services.  

 

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