GBPUSD: Awaits Non-Farm Payrolls, October 04
The GBPUSD pair turned over a dip to the 1.2300 level and is set at the top end of its daily trading range, mid-1.2300s, although solid bullish conviction.
A rashly spike of almost 40 pips over the last hour was driven by Brexit-related headlines that the UK PM B. Johnson has focused on sending an Article 50 extension letter to the EU.
This combined with the prevailing selling bias surrounding the Greenback stayed supportive of the uptick. The USD bulls stayed cautious in the midst of expectations for another interest rate cut by the Federal Reserve at its upcoming in October. Also, the expectations were fortified by the ongoing slide in the US Treasury bond yields to the lowest level since September.
However, traders seemed to be hesitant to place any aggressive bets. Once payrolls are out of the way this afternoon, we will know more about the near term the US dollar outlook.