GBP/USD sellers attack 1.0800 with eyes on BOE speakers, US GDP – by anilpanchal7 GBPUSD BOE RiskAppetite Fed Recession
Recovery in the US Treasury bond yields joins the market’s discomfort in the Bank of England’s confidence to revive the British Pound strength to weigh on the GBP/USD prices of late. On the same line could be the prevailing energy crisis in Europe and current pessimism in China.
Recently, the UK’s car production rose for the fourth straight month in August as per the data from the Society of Motor Manufacturers and Traders , shared via Reuters. That said, the details suggest that almost seven in 10 SMMT members have expressed fears about future business operations. Elsewhere, the People’s Bank of China is another central bank, in addition to the Bank of Japan and the BOE, to defend the domestic currency, namely the yuan. It’s worth noting that the PBOC has recently intervened multiple times in the market and is likely to do so today as well as to defend the yuan amid fears of economic slowdown, led by the covid-led lockdowns.and keep his recently criticized fiscal plan in place also challenge the GBP/USD traders.
On the other hand, the US international trade deficit narrowed by $2.9 billion to $87.3 billion in August from $90.2 billion in July. Details suggest that the Exports dropped for the first time since January while Imports marked the fifth consecutive monthly decline. Further, said on Wednesday that the baseline scenario right now includes a 75 basis points rate hike in November and a 50 bps increase in December, as reported by Reuters.
Looking forward, multiple BOE speakers are on the line and so do the final readings of the US Q2 Gross Domestic Product , expected to confirm -0.6% annualized figure. Considering the same, the GBP/USD may witness further downside ifGBP/USD remains bearish unless providing a clear upside break of 1.0730-35 resistance confluence, including the 10-DMA and a 12-day-old descending trend line.