GBP/USD softens below 1.3300 amid renewed US Dollar demand

• GBP/USD weakens to near 1.3265 in Thursday’s early Asian session. 
• The risk-off mood and upbeat US ADP report lift the US Dollar. 
• A less dovish stance of the BoE might cap the pair’s downside. 

The GBP/USD pair extends its downside to around 1.3265 during the early Asian session on Thursday. The renewed demand for the US dollar (USD) amid the rising geopolitical tensions in the Middle East provides some support to the major pair. The US September ISM Services Purchasing Managers Index (PMI), the weekly Initial Jobless Claims, and the final S&P Global Services PMI will be in the spotlight on Thursday. 

Iran fired more than 180 missiles at Israel on Tuesday, its biggest-ever direct attack on the country. Israel and the United States vowed retribution for the attack. A sign that conflict in the region is intensifying and the fear of wider war boosts the safe-haven flows, benefiting the Greenback against the Pound Sterling (GBP). 

The US ADP Employment Change data for September was better than expectations, with 143,000 new jobs added. This figure was above the median forecast of 120,000 and the revised August figure of 103,000. The attention will shift to the US employment data on Friday for fresh catalysts. 

The expectation that the easing cycle of the Bank of England (BoE) will be lower than other central banks from Group of Seven (G-7) nations might cap the downside for the GBP. The financial market expects the BoE to cut interest rates one more time by 25 bps in the remainder of this year.