GBP/USD steadily climbs to 1.1145-50 area, focus remains glued to US CPI report – by hareshmenghani GBPUSD Fed Bonds Inflation Currencies
The risk-on impulse undermines the safe-haven buck and offers some support to the major.Confusion over the BoE’s emergency bond-buying program further warrants caution for bulls.attracts some buying in the vicinity of the 1.1050 area on Thursday and hits a fresh daily high during the first half of the European session. The pair is currently trading just above the mid-1.
The US dollar edges lower for the second straight day and turns out to be a key factor lending support to the GBP/USD pair. A recovery in the global risk sentiment - as depicted by a generally positive tone around the equity markets - is undermining the safe-haven greenback.
In the meantime, the fact that the Bank of England could end its program of temporary gilt purchases on Friday could act as a headwind for sterling amid concerns about the UK government's fiscal plans. It is worth mentioning that the new UK government said that it would not reverse its vast tax cuts or reduce public spending, warranting caution before placing bullish bets around the GBP/USD pair.