The British pound sterling has dropped noticeably against the US dollar. The current GBPUSD exchange rate stands at 1.2549.
The main reason for GBP's decline is the incredible strength of the US dollar.
Yesterday, the US released the ADP private payrolls for November, and the dollar managed to ignore weak statistics. This happened because a decrease in labour market activity could provide confidence for the Federal Reserve and signal the need for an interest rate increase.
However, it should be admitted that there is no direct connection between the ADP payrolls and the NFP report scheduled for Friday. This explains the shallowness of the GBPUSD decline. Simultaneously, the risk of seeing weaker data than expected at the end of the week supports the positions of the US national currency and suppresses other currencies, including the pound.
Domestic news from the UK now seems to be out of investors' focus. The market found nothing interesting in the previous BoE meeting minutes published yesterday.