GBP/USD climbs to over two-week top, beyond mid-1.2100s amid sustained USD selling – by hareshmenghani GBPUSD Fed Bonds RiskAppetite Currencies
entum lifts spot prices to a two-and-half-week high, around the 1.2170 area during the first half of the European session and is sponsored by the prevalent US Dollar selling bias.
In fact, the USD Index, which tracks the greenback against a basket of six currencies, hangs near the monthly low and is pressured by a combination of factors. Friday's mixed US monthly jobs report and the disappointing release of the US ISM Servicesfueled speculations that the Fed will soften its hawkish stance. In fact, the markets are now pricing in a 25 bps Fed rate hike move in February, which leads to a further decline in the US Treasury bond yields.
China's pivoted away from its strict zero-COVID policy and opened its borders over the weekend for the first time in three years. This, in turn, boosted investors' appetite for riskier assets, which is evident from the upbeat mood around the equity markets. Investors, however, remain concerned that the massive flow of Chinese travellers may cause another surge in COVID infections.
Traders might also refrain from placing aggressive bets and prefer to move to the sidelines ahead of the release of the latest US consumer inflation figures on Thursday. The crucial US CPI could influence the US central bank's near-term policy outlook and provide a fresh directional impetus to the pair. In the meantime, the US bond yields, along with the broader risk sentiment, will drive the USD demand and provide some impetus to the major in the absence of any major market-moving economic releases on Monday.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Pairs in Focus This Week-Bitcoin, Gold, EUR/USD, GBP/USDGet the Forex Forecast using fundamentals, sentiment, and technical position analyses for major pairs for the week of January 8th, 2022 here.
Read more »
GBP/USD: Weekly Forecast 8th January - 14th JanuaryThe GBP/USD went into the weekend near the 1.20860 level, after starting the week near a high of around 1.21000.
Read more »
GBP/USD Price Analysis: Further upside hinges on 1.2130 breakoutGBP/USD bulls flirt with the 1.2100 threshold during Monday’s Asian session, after posting the biggest daily jump in five weeks on Friday. Even so, th
Read more »
GBP/USD extends gains above 1.2100 as US recession fears soarThe GBP/USD pair has surpassed the round-level resistance of 1.2100 in the Tokyo session. The Cable is expected to shift its auction profile above 1.2
Read more »
GBP/USD surpasses 1.2150 despite Fed sees hawkish policy continuation into 2024GBP/USD has overstepped the critical resistance of 1.2150 in the early European session. The Cable may need significant bids to extend its upside jour
Read more »
GBP/USD looks biased towards the 1.2350 area this week – INGGBP/USD holds in positive territory at around 1.2150. Economists at ING expect the pair to extend its advance towards the 1.2350 region. BoE Chief Eco
Read more »