GBP/USD slides below mid-1.3100s, lowest since December 2020 amid a blowout USD rally By HareshMenghani GBPUSD RussianFederation Ukraine RiskAversion Currencies
The global flight to safety continued benefitting the safe-haven USD and exerting pressureGBP/USD pair
continued losing ground through the mid-European session and dropped to the lowest level since December 2020, around the 1.3140 region in the last hour. The pair added to last week's heavy losses and witnessed some follow-through selling for the third successive day on Monday amid an extension of the recent strongrally. Investors continued to dump riskier assets in the wake of a further escalation in the Russia-Ukraine conflict. This, in turn, boosted demand for traditional safe-haven assets and pushed the USD to its highest level since May 2020.
In the latest development, US Secretary of State Antony Blinken said that the Biden administration was in discussions with European governments about banning imports of Russian crude and natural gas. This has led to a sharp rise in prices ofand stoked fears of a major inflationary shock for the global economy. This was seen as another factor that took its toll on the already weaker risk sentiment.
Apart from this, Friday's mostly upbeat US monthly employment details and an uptick in the US Treasury bond yields further underpinned the greenback. The downward trajectory took along some short-term trading stops placed near the 1.3200 round figure. Hence, the decline could further be attributed to some technical selling. A subsequent break below the 2021 low might have already set the stage for further losses.
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.
GBP/USD: Failure to hold 1.3160 to open up significant losses toward 1.30 – SocGenGBP/USD is drifting towards the low of December at 1.3160 – removal of which would clear the way for a substantial drop to the 1.30 level, economists
Read more »
BTC/USD Forex Signal: Path of Least Resistance is BearishThe BTC/USD pair declined slightly during the weekend as last week\u2019s rally evaporated.
Read more »
GBP/USD bounces off YTD low, lacks follow-through amid Russia-Ukraine jittersGBP/USD bounces off YTD low, lacks follow-through amid Russia-Ukraine jitters By HareshMenghani GBPUSD RussianFederation Ukraine RiskAversion Currencies
Read more »
USD/CAD struggles to justify oil’s rally amid Ukraine, Libya risksUSD/CAD sellers attack the 1.2700 threshold while refreshing intraday low during early Monday morning in Europe. In doing so, the Loonie pair struggle
Read more »
USD/CHF rallies towards 0.9200 on firmer DXY amid the broader risk-aversion themeThe USD/CHF pair has rebounded strongly from 0.9165 amid a broader risk-aversion theme in the market which has underpinned the greenback. The escalati
Read more »
Gold Price Forecast: XAU/USD to lurch higher towards summer 2020 highs of $2,075 – TDSRussia-Ukraine conflict-driven commodity price spikes and the resulting higher inflation expectations have prompted money managers to extend their net
Read more »