GBP/USD surrenders intraday gains, back below 1.2300 mark amid modest USD uptick – by hareshmenghani GBPUSD Bonds Fed BOE Currencies
The ongoing rally in the US bond yields is seen as a key factor lending support to the buck.The prospects for additional rate hikes by the BoE should extend some support to the pair.attracts some sellers following an early uptick to the 1.2330 region on Tuesday and retreats to the lower end of its daily trading range during the first half of the European session. The pair is currently placed just below the 1.
Easing fears of a full-blown banking crisis continues to push the US Treasury bond yields higher, which, in turn, assist the buck to recover its modest intraday losses to a two-day low. That said, the Federal Reserve's signal last week that it might soon pause the rate-hiking cycle, along with a positive risk tone, could cap the upside for the safe-haven Greenback and lend support to the GBP/USD pair.
The global risk sentiment remains supported by fading worries about the contagion risk from the recent turmoil in the banking sector, especially after the takeover of Silicon Valley Bank by First Citizens Bank & Trust Company.
The aforementioned fundamental backdrop suggests that the path of least resistance for the GBP./USD pair is to the upside and any subsequent pullback might still be seen as a buying opportunity. That said, bulls might wait for some follow-through buying beyond the monthly top, around the 1.2340-1.2345 area touched last week, before positioning for any meaningful gains.
There isn't any major market-moving macro data due from the UK on Tuesday, while the US economic docket features the Conference Board's Consumer Confidence Index and the Richmond Manufacturing Index. This, along with the US bond yields and the broader risk sentiment, might influence the USD price dynamics and produce short-term opportunities around the GBP/USD pair.
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 \u2013 EUR/USD, Gold, GBP/USD, USD/JPYGet the Forex Forecast using fundamentals, sentiment, and technical position analyses for major pairs for the week of March 26th, 2022 here.
Read more »
GBP/USD Price Analysis: Refreshes daily high amid positive risk tone, subdued USD demandGBP/USD Price Analysis: Refreshes daily high amid positive risk tone, subdued USD demand GBPUSD RiskAppetite Technical Analysis Majors Currencies
Read more »
GBP/USD surrenders gains as US promises expansion of financial support to mid-size banksGBP/USD surrendered gains as US promises expansion of financial support to mid-size banks – by Sagar_Dua24 GBPUSD Fed BOE Inflation DollarIndex
Read more »
GBP/USD sticks to modest intraday gains around mid-1.2200s, lacks follow-throughThe GBP/USD pair builds on Friday's late intraday rebound from sub-1.2200 levels and gains some positive traction on the first day of a new week. The
Read more »
GBP/USD: Weekly Forecast 26th March - 1st AprilThe GBPUSD turned in a choppy week of results as trading within the currency pair reflected the nervous behavioral sentiment being generated in the broad marketplace- trading forextrading
Read more »
GBP/USD bulls poke 1.2250 with eyes on BoE’s Bailey, Fed’s preferred inflation gaugeGBP/USD begins the week on a positive footing, renewing its intraday high near 1.2250 while extending the previous two-week uptrend, as fears of US re
Read more »