Ahead of the opening of the European session this Tuesday (28/7), the US dollar rose to recover from its latest lowest point. With this, it has brought the bearish GBPUSD currency pair up to 0.21% towards the 1.2855 exchange rate. Meanwhile, the weakening of the US dollar previously managed to send the pair to its highest point in 4.5 months.

One factor that brought the US dollar up was perhaps the comments made from US government staff mark meadows regarding politics in the White House. It is said that there are positive talks with Nancy Pelosi. Meanwhile, during the Asian session, the republican party confirmed the hopes of a $ 1.0 trillion stimulus to support the US economy.

Meanwhile, about Brexit, the head of negotiations from the European Union, Michael Barnier, said that he was sure there would be an agreement with Britain. But there is a problem with France with member countries regarding fisheries. The threat of Brexit without agreement still reverberates after the financial times released a piece of news.

The media Dalma advised PM Boris adviser Dominic Cummings to become the chair of the approach to the regulation of light-touch by the European Union regarding assistance from the state. Support for the pound to fight the rising US dollar came from the hopes of the latest British and US agreements.

Middle Dollar Increases

It seems that all of the above dynamics will continue to be able to move the GBPUSD currency pair going forward. Especially for the US dollar which is waiting anxiously for the meeting to be met tomorrow Wednesday.

However, the recent increase in the US dollar has been linked to the meeting. So that the results of the meeting will be highly awaited and considered by market participants and global investors as the next direction for the US dollar.

The dollar bounced from two-year lows on Tuesday as selling pressure waned ahead of the federal reserve meeting and when the political squabbling over the next US fiscal rescue package drew closer to conclusions.

The world's reserve currency has fallen since May and was dumped in recent days due to cracks in the recovery of the coronavirus and devastated crops sending investors elsewhere. Buyers crept out of wood after the retreat of gold prices in the middle of the Asian session, lending support to the greenback and pushing other majors out of the peak of achievement.

Most analysts say the reasons for the broader dollar decline, especially the decline in real yields, remain intact but that the pace of decline may guarantee a pause - especially with the fed meeting and the US spending package soon.

US Dollar Movements

On the horizon is a fed meeting that starts later on Tuesday and a Friday deadline for the US Congress to extend unemployment benefits - both of which are unexpected enough to inject some nerves into betting against the dollar.

Against a basket of currencies, the dollar lifted from a two-year low of 93.422 to 93.918. However, it dropped 3.6% in July and will need a stronger bounce to avoid posting its worst month in almost a decade.

No policy changes are anticipated at the fed meeting on Wednesday, but investors hope to hear the prospect of super-ease being reaffirmed and speculate about changes in emphasis in the guidelines going forward.

One shift could be targeting inflation on average, which would see the fed aims to push inflation above the 2% target to make up for the shootings over the years.

The prospect has pressured real us yields, sending yields on inflation-protected 10-year paper to a record low of -0.92% last week, where it held. But an increase in nominal yields, pushing 10-years to week-highs of 0.63% on Monday, shows investors can "sell facts," even if the fed sounds dovish.