GBP/USD bulls flushed out as US dollar soars

  • GBP/USD plummeted on Wednesday but bulls are moving in. 
  • US dollar rallies to fresh daily highs as US yields soar on Fed narrative. 

GBP/USD was sent packing all the way to the lowest levels since the end of 2020 with two-fold risk sentiment. These included soaring natural gas prices and petrol shortages in Britain due to Brexit Supply chain constraints as well as a global equity selloff on Tuesday.

A post-Brexit shortage of lorry drivers has sown chaos through British supply chains in everything from food to fuel, and the concern for emergency services is a critical point, especially given the Delta coronavirus crisis. Supply chain constraints exacerbated by Brexit means that UK consumers are facing surging food and energy bills at the same time that pandemic support measures are being unwound.

”Labour shortages and supply chains disruptions are currently common across the globe,” analysts at Rabobank…

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