Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
Cancel Confirm
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Confirm
Octa trading broker Sign up Log in
Octa trading broker
Open trading account
Trading news
Back
4 Aug 2021

GBP/USD drops to 1.3900 as USD gathers strength on hawkish Fed commentary

  • GBP/USD lost its traction after rising above 1.3950.
  • US Dollar Index staged a decisive rebound following a decline below 92.00.
  • Hawkish comments from Fed's Clarida seem to be providing a boost to the USD.

The GBP/USD pair rose to a daily high of 1.3958 in the early trading hours of the American session but failed to preserve its bullish momentum. With the greenback regathering its strength, the pair reversed its direction and was last seen posting small daily losses at 1.3901.

DXY erases ADP-inspired losses

Earlier in the day, the disappointing labour market data from the US weighed on the USD. The Automatic Data Processing (ADP) Research Institute reported on Wednesday that the private sector employment increased by 330,000 in July, missing analysts' estimate of 692,000 by a wide margin.

Although the US Dollar Index (DXY) declined to a daily low of 91.90 after the ADP data, hawkish comments by Fed Vice Chair Richard Clarida helped it regain its traction.

Clarida noted that he can certainly see the Fed announcing tapering later in the year and added that he expects conditions for the Fed to start raising interest rates toward the end of 2022. Currently, the DXY is up 0.25% on the day at 92.30.

On Thursday, the Bank of England (BoE) will announce its monetary policy decisions. Previewing this event, "a dovish decision that would consist of uncertainty and pledges to support the economy is not fully priced in," noted FXStreet analyst Yohay Elam. "There are good reasons for the BOE to convey a cautious message on its August "Super Thursday." That would weigh on GBP/USD but probably not for too long."

Bank of England Preview: Five reasons the doves are set to win Super Thursday, GBP/USD may dip.

Technical levels to watch for

 

Aug 4, 2021

EUR/USD tumbles from near 1.1900 to one-week lows under 1.1840

The EUR/USD reversed sharply amid a rally of the US dollar and fell from the highest level in three days to a one-week low in a few minutes. The pair
Read more Previous
Aug 4, 2021

US Service ISM: A new record in July, despite headwinds – Wells Fargo

The ISM service sector activity index released on Wednesday showed numbers above expectations. It hit a record high in July at 64.1. While stronger hi
Read more Next