The US Dollar languishes near a two-week low and continues to be weighed down by the disappointing release of the US Initial Jobless Claims, which in turn, acts as a tailwind for the GBP/USD pair. The US Department of Labor reported on Thursday that the number of Americans filing new claims for unemployment benefits rose more than anticipated, to the highest level in more than 1-1/2 years last week.
Adding to this, a slight improvement in the global risk sentiment further weighs on the safe-haven buck and offers additional support to the GBP/USD pair. That said, worries about a global economic slowdown might keep a lid on any optimism in the markets. In fact, the Organization for Economic Co-operation and Development forecasts that the global economy is set for a weak recovery over the coming years as persistent core inflation and tighter monetary policy weigh on demand.
Traders, meanwhile, might prefer to move to the sidelines ahead of the latest US consumer inflation figures and the key central bank event risk - the highly anticipated FOMC monetary policy meeting - next week. In the meantime, the