GBP/USD attempts a recovery around 1.2120 as US Dollar turns volatile

• GBP/USD is aiming to build a cushion around 1.2120 as the US Dollar is displaying chaotic moves.
• Phenomenal strength in the United States economy is not favorable for Fed’s current monetary policy.
• UK’s food supply crisis is expected to accelerate already higher food inflation further.

The GBP/USD pair has witnessed a marginal correction after picking demand near the crucial support of 1.2120 in the Asian session. The Cable has attempted a recovery backed by volatile moves shown by the US Dollar Index (DXY). It would be early to cite that the risk aversion theme has faded amid an absence of a positive trigger. Therefore, the Cable’s recovery moves need to pass more filters ahead.

The USD Index is displaying topsy-turvy moves after failing to extend gains above the critical hurdle of 105.70. Meanwhile, S&P500 futures have also picked up minimal demand after remaining lackluster in early Tokyo. The United States equities…

Read more…