Ahead of US data and FOMC minutes, GBP/USD is trading close to a weekly high, slightly below mid-1.1900s.

VOT Research Desk

On Wednesday, the GBP/USD pair builds on the previous day’s upward movement and has some follow-through movement.

The pair stays in a bid mood during the early North American session and is now trading close to the weekly high, just below the mid-1.1900s. The GBP/USD pair is seen benefiting from the US Dollar bulls’ defensive posture, which is maintained by a number of reasons.

Investors have been pricing in a greater likelihood of a relatively lower 50 bps lift-off in December because they appear to be confident that the US central bank will decrease the speed of its rate-hiking cycle.

This keeps the safe-haven Greenback under pressure, combined with an overall upbeat atmosphere on the equities markets. The US economic calendar, which includes the publication of their own flash PMIs, Durable Goods Orders, Weekly Initial Jobless Claims, and New Home Sales, may provide the GBP/USD pair some momentum in the interim.

However, given that investors are awaiting new information on the Fed’s policy stance and the trajectory of future rate hikes, the market’s response to the US macro data is more likely to be modest.

This will affect the USD price dynamics and decide the major’s short-term trajectory.