GBP/USD refreshes weekly lows below 1.3850 on USD strength

• GBP/USD follows the footprints of the previous week and edges lower in the early Asian trading session.
• US Dollar Index trades near 93.00 on upbeat economic data and Fed official’s hawkish views.
• The sterling struggles on the BOE hawkish shift, Brexit tension.

GBP/USD edges lower on Monday’s Asian trading session. The pair opened higher albeit retreated quickly to touch the intraday low of 1.3858.

At the time of writing, GBP/USD is trading at 1.3862, down 0.06 % for the day.

The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades above 92.80 with 0.11% gains. The upbeat Nonfarm Payroll (NFP) data came higher at 943k in July, the highest in the past 11-month period, above the market expectations of 870k

Meanwhile, US Senate moved closer to formalise a $1 trillion infrastructure on Sunday, adding to the optimism surrounding the US dollar. 

In addition to that, investors rushed to safe-haven assets in view of the rapid spread of the delta variant and its impact on the global economic recovery.

On the other hand, the sterling gave up all the previous gains after the Bank of England (BOE) kept its key rates unchanged at historic lows of 0.1% as widely anticipated in the previous week.

In the latest development, the UK Prime Minister Boris Johnson warned the EU to get “extremely tough” over the Northern Ireland (NI) issue or risk the destructive breakup of the UK. The comments weighed on the British pound.

As for now, investors waiting for the release of the US JOLTS Job Opening for June to gauge the market sentiment.

GBP/USD additional levels