GBPUSD RECOVERING FROM 3- WEEK DIP; AWAITS CUES FROM US ADP REPORT

Published on Jan 04, 2024 13:29

GBPUSD pair is seen recovering from a three-week low although momentum remains subdued as investors await clarity on global interest rate scenario for the New Year. US Fed minutes seemed less certain on timing and quantum of interest rates cuts that boosted benchmark treasury yields and dollar higher. The 10 year US treasury yields climbed above 3.9% while dollar index reclaimed 102 mark. Slight pull back in greenback from a 3-week high today is giving some respite to pound although it held well supported above $1.26. Currently, the pair is trading at $1.2689, off recent lows but still staying below $1.27 mark for the year. The final services PMI from the domestic docket and US ADP nonfarm payrolls and unemployment claims will be closely watched for further cues. On the NSE, GBPINR regained some impetus after falling for two consecutive days. The futures pair is quoting at 105.64, up 0.35% on the day.