GBP/USD drops to new multi-week lows close to 1.1900

The GBP/USD pair experienced a significant decline in the European morning, reaching its lowest level in a month close to 1.1900 after having spent the Asian session in a fairly narrow range around below 1.2100. At 1.1915, the pair was last observed down 1.1% for the day. The US Dollar started the day on a solid footing with investors returning from the New Year break, despite the lack of fundamental drivers. The US Dollar Index sharply increased and crossed over 140.70, where it was up 1.2% on a daily basis after losing almost 1% in the final two trading days of 2022. The Pound Sterling appears to be carrying more weight due to UK political unrest. The childcare reform, which was intended to help parents save money and go back to work, was reportedly put on hold by British Prime Minister Rishi Sunak over the weekend, according to The Telegraph. In addition, the first of five straight days of nationwide rail strikes has begun. For new inspiration, attention will be paid to S&P Global's December (final) Manufacturing PMI and November Construction Spending from the US. The major Wall Street indexes are still expected to open in the green ahead of the release of this data, with US stock index futures increasing by 1% during European trading hours. However, the risk-favorable market environment has not yet revealed the US Dollar's surge.