GBP/USD retreats from 1.2330 as cautious market mood improves US Dollar appeal – Crypto News – Crypto News
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GBP/USD finds some support near mid-1.1400s, eyes BoE for fresh impetus GBP/USD finds some support near mid-1.1400s, eyes BoE for fresh impetus

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GBP/USD retreats from 1.2330 as cautious market mood improves US Dollar appeal – Crypto News

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  • GBP/USD has shown recovery from 1.2330 however, the downside bias seems solid.
  • Investors are entirely focusing on the US debt-ceiling issues rather than dovish cues from FOMC minutes.
  • UK Hunt remained confident that inflation will get halved by the year-end.

The GBP/USD pair has shown some recovery after printing a fresh six-week low at 1.2332 in the early European session. The Cable is expected to resume its downside journey after a less-confident pullback as investors have underpinned the risk-aversion theme due to the pending US debt-ceiling raise.

S&P500 futures have trimmed some gains added in early Asia as investors are getting cautious that the United States economy could announce a default in obligated payments if the US borrowing cap doesn’t get raised before June 01.

The US Dollar The Index (DXY) is looking to extend its upside further after refreshing its two-week high at 104.06. It seems that investors are entirely focusing on the US debt-ceiling issues rather than dovish cues for interest rate guidance in the Federal Open Market Committee (FOMC) minutes. Several Federal Reserve (Fed) policymakers see interest rate hikes in June’s monetary policy less certain amid US banking turmoil.

Meanwhile, Atlanta Federal Reserve (Fed) President Raphael Bostic has advocated that the central bank should remain data-specific for June’s monetary policy meeting. He further added that no consideration of an interest rate cut well into 2024 would be the best-case scenario.

On the Pound Sterling front, United Kingdom inflationary pressures remained mixed on Wednesday as the headline Consumer Price Index (CPI) softened but remained well above consensus while core inflation escalates further. This might force the Bank of England (BoE) to announce more interest rates ahead.

However, UK FM Jeremy Hunt remained confident that inflation will get halved by the year-end. And tax cuts could be announced only in an inflation-supportive environment.

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