The British Pound extended its decline against the US Dollar for a second consecutive session on Thursday, trading around 1.3590 during European trading hours. The pair faces sustained pressure as the Dollar maintains strength following robust US economic data released Wednesday, which has reinforced market expectations for Federal Reserve interest rate hikes.
The GBP/USD downturn reflects broader currency market dynamics where the greenback is gaining ground across the board. Strong American economic indicators are bolstering the Fed’s case for maintaining a hawkish monetary policy stance, drawing capital flows toward Dollar-denominated assets. Meanwhile, Sterling lacks comparable support, leaving it vulnerable to continued weakness against its major counterpart.
Traders should monitor upcoming US data releases and Fed commentary closely, as any further signs of economic resilience could push the Dollar higher and drive GBP/USD below current support levels.
FXnCO Insight
Consider defensive positioning on Sterling crosses as Dollar strength shows no immediate signs of abating, with 1.3550 representing the next key downside level to watch.
Source: FXStreet