GBP/USD Slides On Yellen-Factor
GBP/USD currency pair was on the downward slide, following the series of views shared on the US Economy by the Chairperson of the Federal Bank, Janet Yellen.
The Pound has been on a downward slide from in-bound data release and greenback’s positive moves, based on Yellen official statements.
During the trading session on Wednesday, GBP/USD was tracking the downward trend with drop of 0.08% reaching 1.7130. For the session in consideration, the pair was found to have dashed higher from the previous session low of 1.7116, but was off the high level of 1.7151.
The currency pair, according to Cable, is expected to find support between the ranges of 1.7060 and 1.7192 which is the Tuesday’s low and high respectively.
As demand for the greenback rose, given the ramifications of Yellen’s views, the arrival of ‘stretches’ in stock valuations in a cross section of small-cap as well as biotechnology stocks. Additionally her positive thoughts that the likely recovery of the labor market would drive her department to review the interest rate high angle again, has definitely led to the dollar gaining some strengths.
Other factors which are driving the USD are the Wholesale prices which are reported higher than what analysts had estimated for the month of June.
In an addition US Producer Price Index was found to rise higher to 0.4% for the month of June from the month of May. The data released by US Bureau of Labor Statistics, allowed the currency to gain during the market calls by 0.2% upside.
GBP/USD was also affected by UK’s positive employment report. The indication was that the economic recovery in the island nation was on the upside. The economic repercussions would be in the form of revisions in the interest rates. It is expected that the Bank of England may reconsider hiking the rates by the end of the year.
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