Title: GBP/USD slides further below mid-1.3900s, fresh six-week lows
Jun 17, 2021 11:59:05 AM GMT
GBP/USD grew to become decrease for the 5th consecutive consultation on Thursday amid sustained USD buying.
The Fed’s hawkish shift, a usually softer chance tone endured underpinning the safe-haven USD.
Brexit/COVID-19 woes acted as a headwind for the sterling and contributed to the promoting bias.
The pair struggled to capitalize on its early uptick, as an alternative met with a few sparkling deliver close to the important thing 1.4000 mental mark and grew to become decrease for the 5th consecutive consultation on Thursday. The ongoing downward trajectory became completely subsidized through robust follow-thru US greenback wonderful flow to the very best stage considering the fact that April 13.
The Fed amazed markets with a hawkish activate Wednesday and indicated that price hikes ought to come as quickly as 2023. The so-known as dot plot pointed to 2 hikes through the quilt of 2023 as in opposition to March's projection for no boom till 2024. A hawkish shit endured appearing as a tailwind for the USD and exerted a few stress at the GBP/USD pair.
On the alternative hand, the British pound became weighed down through issues approximately the EU-UK collision over Northern Ireland protocol. In the ultra-modern Brexit-associated developments, UK Prime Minister Boris Johnson stated on Wednesday that they'll should take steps to make certain the post-Brexit exchange among Britain and NI is uninterrupted.
This, together with the United Kingdom government's choice to keep off the timeline for the very last level of easing lockdown measures to July 19, in addition contributed to the presented tone surrounding the GBP/USD pair. In the absence of any fundamental market-transferring financial releases, the USD rate dynamics will retain to play a key position in using the fundamental.