4/6/2021 11:51:30 AM GMT
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By Haresh Menghani
A goodish pickup in the USD demand prompted some fresh selling around GBP/USD on Tuesday.
The upbeat US economic outlook, a softer risk tone drove some haven flows towards the USD.
Retreating US bond yields did little to cap the USD amid expectations for an earlier Fed rate hike.
The GBP/USD pair maintained its heavily offered tone through the mid-European session and was last seen hovering near the lower end of its daily trading range, around the 1.3825-20 region.
The pair witnessed a dramatic intraday turnaround on Tuesday and dropped nearly 100 pips from the 1.3920 region, or over two-week tops amid the emergence of some fresh buying around the US dollar. Investors remained optimistic about the prospects for a relatively strong US economic growth amid the impressive pave of coronavirus vaccinations. The incoming economic data, including the latest NFP report and Monday's ISM Services PMI, reinforced the upbeat outlook and continued underpinning the greenback.