GBP/USD moves closer to fresh monthly high near 1.3850 ahead of NFP data
GBP/USD edges higher on Friday in the Asian session.
US Dollar Index remains below 92.50 following the previous sessions decline.
The sterling capitalizes on the fresh weakness in the US dollar, Brexit optimism.
After touching the high above 1.3840, GBP/USD continues to edges higher on Fridays Asian trading session. The pair opened lower but managed to trade higher on broad-based USD selling.
At the time of writing, GBP/USD is trading at 1.3836 up 0.04% % for the day.
The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades below 93.00 with 0.01% losses ahead of the US Nonfarm payrolls data.
The US 10-year Treasury yields drift lower to trade at 1.29% down 0.16% for the day.
The US Weekly Jobless claims fell to its pandemic level. The number of Americans filing new claims for unemployment fell to 340K below the market consensus of 345K whereas the Unit lobor costs jumped an annualized 1.3% in the Q2 as compared to an expectation of a 1% rise. The upbeat data failed to uplift the greenback from the lower levels.
On the other hand, the sterling gains on the recent optimism surrounding Brexit. The British Government demanded to rewrite a controversial section of the Brexit withdrawal agreement that might provide Brussels sweeping powers over UK state-aid decisions to which prominent EU legal experts have lended their support.
As for now, investors turn their attention to the critical US Nonfarm payrolls and Unemployment data to take fresh trading impetus.