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The GBP/USD fluctuates during the day as traders wait for Fed’s Powell to take the stand on the sidelines. US growth in the second quarter improved but remains below the 0% threshold; a US recession looms.
Money market futures expect the BoE to hike rates 250 bps by May of 2023. The GBP/USD slightly advanced in the US trading session, staying a comeback after penetrating below the 1.1800 figure for the fourth time in the week, but a shift in sentiment augmented the appetite for the Sterling. Factors like China’s stimulus to the housing and construction markets underpinned worldwide stocks.
The GBP/USD reached a daily low of around 1.1783 during the Asian session before climbing towards the day’s high at 1.1864. Nevertheless, it retreated towards current exchange rates. At the time of writing, the GBP/USD trades at 1.1817, registering marginal gains of 0.18%.
Before Wall Street opened, the US Department of Commerce reported that the US Gross Domestic Product for Q2 improved, by -0.6%, higher than estimates of -0.8%, and above the advanced reading. At the same time, the Bureau of Labour Statistics revealed that Initial Jobless Claims for the week ending on August 20 were lower than expected, at 243K from 253K.
