GBPUSD is trading down at 1.2630, owing to a rebound in the US Dollar (USD).

GBPUSD is trading down at 1.2630, owing to a rebound in the US Dollar (USD), which might be linked to a rise in US Treasury yields. Which ended a two-day losing run. The US Dollar Index (DXY), which measures the performance of the US dollar against six other major currencies, is trading higher. During the Asian session, around 103.60 at the time of writing.

The US Dollar (USD) is treading water in an attempt to recoup two-day losses.

The US Dollar (USD) is attempting to recoup its two-day losses. Treasury rates in the United States declined by 2.04% on Tuesday. This put downward pressure on the buck. The 10-year US bond yield currently stands at 4.13%. Furthermore, poor economic statistics from the United States (US). On Tuesday reinforced dovish attitude about the Fed’s monetary position. This has exacerbated the negative pressure on the GBPUSD pair.

As previously stated, US Consumer Confidence (Aug) decreased to 106.1 from 114.0 the previous month. Falling short of the predicted 116.0. US JOLTS Job Openings decreased in July, reporting 8.827 million vs 9.165 million the prior month. This is in contrast to the predicted increase of 9.465 million.

GBPUSD Investors are looking for more signals on the Fed’s policy decision in the form of US economic data.

Investors expect the Bank of England (BoE) to raise interest rates by 25 basis points (bps) at its monetary policy meeting in September. However, it appears that there isapprehension among investors. Since the threat of more monetary tightening might have a detrimental impact on the United Kingdom’s (UK) economic prospects.

The CME’s FedWatch Tool, on the other hand, currently suggests. That the market is pricing in an 11.5% chance of a rate rise. During the forthcoming meeting of the US Federal Reserve (Fed). Investors believe the Fed will postpone any rate rises until its September meeting. This prevalent perception is putting downward pressure on the value of the US dollar.

Furthermore, US Federal Reserve (Fed) Chairman Jerome Powell stated at the Jackson Hole Symposium. That the Fed’s decision on the next interest rate rise will be data-driven. As a result, traders of the GBPUSD. The pair is now in a mood of anticipation as they anticipate the release of impending economic data from the United States.

With no noteworthy news from the UK this week, investors’ attention has switched to acquiring a better understanding of the United States’ (US) economic prospects. The US ADP Employment Change for August and the preliminary Gross Domestic Product Annualized for the second quarter (Q2), both of which are due to be issued later in the North American trading day, are among the impending statistics.