GBP/USD: The cable finds support for the BoE

GBP/USD once again showed some resilience at lower levels despite resurgent USD demand as diminishing odds for an immediate BoE rate cut provided an additional boost on Wednesday. Fears of a no-deal Brexit might cap gains while Carney’s scheduled speech is to produce some impetus, Haresh Menghani from FXStreet reports. 

Key quotes

“The greenback held on to its strong gains following the release of better-than-expected US macro releases. The latest ADP report showed that the US private sector employers added 183K new jobs in February as compared to 170K expected and the US ISM Non-Manufacturing PMI unexpectedly rose to 57.3 in February.”

“Despite resurgent USD demand, the pair once again managed to attract some dip-buying and got an additional boost after the incoming Bank of England Governor Andrew Bailey dampened prospects for an immediate rate cut.” 

“The pair held steady near the 1.2875-80 region through the Asian session on Thursday as market participants now look forward to the present BoE Governor Mark Carney's scheduled speech for some meaningful impetus.”

“The USD price dynamics and the incoming Brexit-related headlines would play a key role in influencing the pair's momentum on Thursday amid absent relevant market-moving economic releases, either from the UK or the US.”