Cable is now hitting fresh lows of 1.2461 as price falls below key support around 1.2480 highlighted earlier in the session. Of note, EUR/USD is on the verge of falling below the 1.1200 handle as well as price trades at three-week lows.

The greenback is finding some fresh bids as it also advances against the likes of the aussie, kiwi and loonie.

It looks like the market is positioning itself expecting Fed chair Powell to reaffirm expectations of less aggressive easing in tomorrow’s testimony and that is something that traders should consider ahead of the event in case Powell doesn’t deliver.