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GBP/USD edging back towards 1.27 as ADP misses the mark

The dollar was already weakening ahead of the latest US ADP payroll report, as just noted in the previous update, looking at the immediate price action on the EUR/USD. At the same time, the GBP/USD had been grinding a bit higher too, but in relative terms, lagging the rebound seen in the EUR/USD. That said the Pound was pushing back closer to the 1.27 handle. The earlier low was set at 1.2667. Leaving aside whatever price action we see this afternoon and this evening after the Fed policy decision, the Pound will grab the spotlight tomorrow. As noted here on Monday, the BOE has it within its policy power to ensure that is the case. I will have more to say on this in due course, but I repeat what I said here on Monday, about the outlook for UK interest rates to transcend those in the Eurozone and the US. As to whether that does happen is still open of course. The GBP/USD is currently  trading at 1.2694
 

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