The U.S. dollar was gaining this morning on a stronger-than-expected GDP report, rising expectations of a Fed rate hike, and easing concerns about global growth. Second quarter GDP was up 3.9%, well ahead of consensus expectations of 3.7%.
Democratic Presidential Candidate Hillary Clinton announced that she opposed the construction of the XL Keystone Pipeline, which would carry more than 800,000 barrels of crude oil a day from Canada to the U.S. refinery network in the Gulf Coast.
Pope Francis and President Barack Obama are set to hold private talks at the White House on Wednesday before the pontiff parades through streets of Washington on the first full day of his first visit to the United States.
The U.S. dollar approached two-week highs on Tuesday morning after Atlanta Federal Reserve Bank President Dennis Lockhart said he predicts the U.S. central bank will raise interest rates at the October or December FOMC meeting.
While this week’s U.S. data doesn’t have a massive direct influence on GBP/JPY, the pair is still a good barometer of risk sentiment in the market and should react to changes in traders’ risk appetite. GBP/JPY has clearly taken a turn for the worse over the last few weeks.