- GBP/USD remains muted on the fresh trading week in the Asian session.
- US Dollar Index rebounds from the early weak start and trades above 92.50.
- The sterling struggles on the BOE hawkish shift, Brexit uncertainty.
GBP/USD edges lower on Monday’s Asian trading session. The pair opened higher albeit retreated quickly to touch the intraday low of 1.3851.
At the time of writing, GBP/USD is trading at 1.3856, down 0.05 % for the day.
The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades above 92.50 with 0.05% gains.
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 continued to struggle against the greenback. The UK Q2 Gross Domestic Product (GDP) report from the Office for National Statistics failed to cheer up investors. The reading came higher at 4.8% in line with the market expectations but a tad less than the 5% as expected by the Bank of England (BOE).
In the meantime, UK reported 26,750 fresh COVID-19 infections on Sunday, while experts warned spike in coronavirus cases next week.
As for now, the dynamics around the US dollar will continue to influence GBP/USD performance in the short term.