GBP/USD trades higher around 1.2620, US economic data eyed
- GBP/USD extends its gains on the back of downbeat US Treasury yields.
- China’s fiscal stimulus is giving rise to cautious optimism and weakening the Greenback.
- Investors await US data releases to gain fresh impetus on the economic outlook.
GBP/USD continues to gain for the second consecutive day, trading around 1.2620 during the Asian session on Tuesday. A sense of cautious optimism weakened the yields on US government bonds, contributing to the upward movement of the GBP/USD pair.
Additionally, the hawkish remarks made by the Bank of England (BoE) Deputy Governor Ben Broadbent at the Jackson Hole Symposium helped the Cable pair to snap a four-day losing streak. As said, Broadbent advocated for policy rates to remain higher for a prolonged period.
The US Dollar Index (DXY), which measures the performance of the Greenback against the six other major currencies, extends its losses and trades around 103.90. The recent fiscal measures introduced by China to attract investors back to its struggling stock markets are contributing to optimistic risk sentiment and weakening the safe-haven US Dollar (USD).
Investors await upcoming data releases from the US, seeking new insights into the country’s economic prospects. These datasets include Jolts Job Openings, Housing Price Index, and Consumer Confidence, all of which are set to be disclosed later in the day. These data releases are anticipated to provide valuable perspectives on the US economic trajectory, potentially impacting trading strategies related to the GBP/USD pair.