The Cable pair is moving into range of 1.1756-1.1769 in the early Asian session. The GBPUSD has witnessed a short-lived pullback after printing a fresh two-year low of 1.1742 on Monday. The less positive pullback move is expected to turn into a new downside move ahead and the asset may fall to near 1.1700.
The US dollar index (DXY) has retook the prices close to 109 and is expected to continue above the same as traders are awaiting the Federal Reserve (Fed) chair Jerome Powell’s speech at Jackson Hole Economic Symposium. After observing evidence of fatigue in the price pressures and accelerating effects of liquidity decline from the economy, it is likely that the Fed will scale down its hawkish tone on the interest rates. Thus, a rate hike by 50 basis points (bps) could be discussed at the Economic Symposium.
Traders are still in a hangover from the downbeat employment data released last week on the pound front. The Claimant Count Change landed at -10.5k, significantly lower than the expectations of -32k and the prior release of -26.8k. Also, the Unemployment Rate remained unchanged at 3.8%. The vulnerable employment data has trimmed the confidence of the Bank of England (BOE) in deploying tight quantitative measures unhesitatingly.
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