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GBP/USD drifts lower as Rabobank flags renewed selling pressure

The pound was at about 1.3420 per dollar, while the US Dollar Index edged up near 100.05 ahead of US jobs data including July Nonfarm Payrolls.

Reported · Written up by our desk · Major Pairs

FXStreet reports the British pound was under modest pressure versus the US dollar in European trading, down about 0.1% to around 1.3420. The focus for price action is a downward-sloping trendline near 1.3470, described as a key barrier for the pair.

Analysts at Rabobank pointed to positioning and central bank communication as drivers. They said GBP net shorts bounced higher ahead of the Bank of England policy meeting, and that although the Monetary Policy Committee had a more hawkish voting split than markets expected, Governor Andrew Bailey’s tone was dovish, offering little support for sterling.

The article also links the GBP/USD selling pressure to a firmer US dollar. It notes the US Dollar Index was slightly higher near 100.05 after rebounding on Monday from a fresh two-week high around 99.42.

Looking ahead, FXStreet said traders are growing cautious ahead of key US economic releases, with July Nonfarm Payrolls due on Friday to provide cues for Federal Reserve policy. It added that investors will also watch June JOLTS Job Openings later in the session.

Latest closeGBP/USD 1.343 ▼0.2%|Dollar index 99.99 ▲0.2%

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