GBP/USD Falls to 3-Weeks Lows
dropped further below 1.4400 and bottomed at 1.4339, the lowest since
April 22. Then it bounced modestly off lows and it was hovering around
1.4350, a hundred pips below today’s opening price.
During the European session, it managed to remain above weekly lows located around 1.4375 but then better-than-expected US economic data weakened the pair that broke below, extending losses.
Another weekly decline
Friday’s decline marks the end of a 3-day recovery that was taking place and a resume of the retracement from May highs. After peaking on May 3 at 1.4768 it has fallen almost 3%.
It is the second weekly decline in a row for cable amid a stronger US dollar, that gained ground despite lower expectations of a June rate hike from the Federal Reserve. Next week, the release of the FOMC latest meeting minutes could provide information about the prospects of US monetary policy.
Yesterday the pound was modestly affected by the decision of the Bank of England and the Quarterly Inflation Report. With the Brexit referendum closer, attention will turn again to polls while the central bank is likely to remain on hold waiting to see the impact of the key event.