“¢ Brexit uncertainties continue to dent sentiment surrounding the British Pound.
“¢ The USD benefits from safe-haven flows and added to the latest leg of downslide.
The GBP/USD pair quickly reversed around 45-pips from the early European session swing higher and is currently placed at the lower end of its daily trading range, around mid-1.2600s.
The British Pound remained depressed amid the UK political uncertainty and growing concerns over a no-deal split as investors seemed convinced that the next UK PM will be a pro-Brexit hardliner. Given that the crucial part of the Tory leadership contest is only set to begin after 13 June, the fact that Brexit impasse will remain regardless of a new leader further collaborated towards capping the pair’s early uptick to the 1.2700 handle.
This coupled with some renewed US Dollar buying interest exerted some additional downward pressure on the major. The global risk sentiment remained subdued amid persistent uncertainties over trade and the outlook for global economic growth, which was evident from a weaker trading sentiment around equity markets and eventually benefitting the greenback’s relative safe-haven status against its British counterpart.
The downside, however, remained cushioned as investors now seemed reluctant to place any aggressive bets and preferred to wait from fresh UK political/Brexit updates amid absent relevant market moving economic releases from the UK. Later during the early North-American session, the Conference Board’s US Consumer Confidence Index will now be looked upon for some short-term trading opportunities.
Technical levels to watch
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