The GBP/USD currency pair falls from its daily high to 1.1870 during the first part of the European session.

The US dollar makes up for the small losses it had yesterday, which makes the GBP/USD pair less stable. The strong US retail sales report on Wednesday may have made the markets bet on the Fed being less aggressive about tightening policy. The safe-haven greenback gets stronger when the yields on US Treasury bonds go up and the market mood is cautious.

A new case of COVID-19 in China worries investors at a time when the cost of borrowing money is going up. Risk sentiment is also affected by political tension. Getting more people to agree that the Bank of England (BoE) will keep raising interest rates could help the pound. This should minimise GBPUSD losses.

Traders might wait for the UK government’s financial plan before making big bets and getting ready for a trend in the near future. The fiscal gap is expected to shrink after today’s Autumn Statement. The British pound will change because of this.

Thursday, we will find out the Philly Fed Manufacturing Index and the weekly initial jobless claims. This, along with FOMC speeches and how the market feels about risk, will affect how the USD price moves and help the GBPUSD pair.

Conclusion

For short-term GBPUSD chances, traders will also keep an eye on US macro data.