GBP/USD gets offers; to gather its first weekly losses in three weeks near 1.2500. This happened as the pair rebounds- off the 21-days moving average. All this happened in Europe during the early hours this morning.
However, the S&P 500 features recovered about 0.5%. This displayed that traders were being; careful with their expectations and predictions about the market. The US Treasury yield dipped by 1.6 bps falling to 2.94%, piercing the people who are being optimistic. Backing these moves are the positive headlines from China and anxiety of the Fed’s aggression, which is growing. In the UK, pessimism about Boris’s future possible standards to control British housing issues appears to disturb pair traders.
Additional Factors Influencing the GBP/USD
Also, Boris Johnson’s major allies are getting ready to protect him in an antagonization to his capacity to lead. Consequently, they agreed that the possibility of rebels balloting of no trust in Boris’s leadership is increasing. This rift will influence the GBP price, and consequently the GBP/USD price action.
We should note that UK’s PM: Boris Johnson, will be giving a speech on housing tomorrow. This speech is likely: to reflect his plans to key into accommodation association tenants.
Somewhere else, Beijing is set to relax the covid activity restrictions combined with the US declaring toll ease for China. This will support careful optimism among traders.
On the USD side, growing chances of the third 50 bps rate increase, by the Fed confronts buyers and sellers. And this will keep confronting them ahead of the release of the US CPI for last month (May).
Conclusion
Finally, politics and US CPI are the major promoters for this week. However, traders should also pay attention to news concerning China, Russia, and the Federal Reserve. All of these will play a key role in the GBP/USD price action.
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