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Pound edges higher as cable breaks above 200-day EMA

Cable traded just above 1.3400 and moved through the 200-day EMA after US data and hawkish Fed remarks failed to lift the dollar.

Reported · Written up by our desk · Major Pairs

British pound sterling strengthened against the dollar, with cable rising by roughly 0.1% on Thursday and trading just above 1.3400. The move marked a return through the 200-day exponential moving average for the first time since mid-June, according to FXStreet.

FXStreet attributed the dollar's lack of traction to a US-heavy session where the available inputs did not translate into gains versus sterling. Initial Jobless Claims came in at 215K versus a 218K consensus and 217K prior, while a voting FOMC member delivered remarks described as firmly hawkish.

The geopolitical and oil-linked backdrop was also described as weighing on the dollar rather than supporting it. FXStreet said US forces hit about 90 targets across Iran after Tehran attacked shipping in the Strait of Hormuz, Washington reimposed crude oil sanctions, and an interim peace framework signed last month was described as functionally suspended.

On the pound side, FXStreet pointed to support from the Bank of England. The BoE held its policy rate at 3.75% in June on a 7-2 vote, with services inflation cited at 3.7% and a household energy cap rising 13.5% into the third quarter, while markets were described as pricing about 76% odds of a BoE hike before year end. Separately, FXStreet noted UK political nominations to replace Keir Starmer run through July 16, with a new Labour leader on July 17 and a new prime minister on July 20.

Latest closeWTI crude $74.03 ▲5.1%

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