Pound / Dollar Rate Risks Further Losses as Fed Policy Shift Looms

GBP/USD nearing 1.3300, setting new 2021 lows as USD lifted by prospect of faster Fed policy shift.

Lockdowns in major European economies were put back on the table following a decision by Austria to reimpose a full lockdown.

The bid to the Dollar following Biden's decision suggests an element of the market was positioned for a surprise whereby Brainard was appointed.

The Dollar Index backed away from a fresh 16-month high in the midweek session after colliding with a major technical resistance level on the charts and as some analysts warned that a short period of profit-taking could now be likely.

The Pound to Dollar rate has attempted to stabilise above November’s new 2021 low and could be likely to correct higher over the coming days if uncertainty about a White House decision on the leadership of the Federal Reserve prompts a momentary retrenchment of the greenback.

Rising odds of a December interest rate hike at the Bank of England have lifted the Pound to Dollar exchange rate up and away from its recent 2021 lows.