GBP Struggles Near June Lows as USD Remains Bullish Ahead of US NFP

The British Pound (GBP) is struggling near its June 26 lows as the US Dollar (USD) remains bullish ahead of the key US Nonfarm Payrolls (NFP) report. The NFP report will provide crucial clues about the Federal Reserve's future policy path, which could influence USD price dynamics. Meanwhile, persistent geopolitical uncertainties and oil-driven inflation fears are supporting the safe-haven buck.

The GBP/USD pair is maintaining a bearish near-term tone, with the overnight break below 1.3200 setting the stage for a fall towards retesting the year-to-date low around 1.3140. This could be followed by a test of the 1.3100 round figure. However, any attempted recovery may face stiff resistance ahead of 1.3300.

The USD Index (DXY) is standing firm near a one-and-a-half-year top as oil-driven inflation fears limit the overnight pullback in US bond yields from multi-year highs. The receding bets for an October rate hike are also playing a key role in influencing the near-term USD price dynamics.