GBP/USD could find feet near 1.21 short-term
Speculative market risk reduction may support
U.S. PCE data eyed as UK calendar quietens
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The Pound to Dollar exchange rate toppled from six-month highs last week as deteriorating economic data and hawkish central banks drove a rout in risky assets but Pound Sterling could benefit this week if the forthcoming holiday period leads the speculative market to lighten up on its own risk for a while.
Sterling gave up much of this month’s gain over the Dollar last week when riskier currencies came under pressure alongside stock and bond markets following unambiguously hawkish messages from the Federal Reserve (Fed) and European Central Bank (ECB) in the latter half.
Each warned that financial markets are likely underestimating the extent to which interest rates are set to rise up ahead, boosting the Dollar and Euro just as…