GBP/USD tumbles toward 1.3750, eyes last week lows ahead of FOMC minutes


  • A stronger US dollar across the board pushes GBP/USD toward 1.3750.
  • US FOMC minutes to be released at 18.00 GMT.

The GBP/USD turned decisively to the downside during the last hours amid a rally of the US dollar. Cable reached 1.3755, the lowest since last Friday. It remains near the lows, under pressure, and looking at the last week’s low registered at 1.3730.

US dollar does it again

Like on Tuesday, the US dollar accelerated to the upside, during the American session as stocks reversed its trend and despite the decline in US yields; the same pattern of Tuesday.  The 10-year yield dropped below 1.30% for the first time since mid-February. The Dow Jones failed to hold into positive ground and is falling 0.28%.

The US Dollar Index reached the 92.80 area, the highest level since April. It is rising for the second day in a row (+0.23%) and remains near the top as traders await the FOMC minutes from their latest meeting.

June’s meeting minutes will be watched closely by market participants with the focus on clues about the tapering of the asset purchases program. Comments from officials about the future path of monetary policy could trigger also sharp moves. 

Technical levels

 



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