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GBP/USD slips as US Treasury yields rebound

The dollar’s rise followed a rebound in the 10-year US Treasury yield from a dip toward 4.61% on Tuesday, while GBP remains range-bound near 1.34.

Reported · Written up by our desk · Major Pairs

GBP/USD edged lower on Wednesday after modest gains the prior session, with the pair trading around 1.3450 during Asian hours, according to FXStreet.

FXStreet said the selling pressure on Sterling came as the US Dollar gained momentum on a rebound in the benchmark 10-year US Treasury yield, which had dipped toward 4.61% on Tuesday, helped by falling energy prices that cooled inflation worries and reduced expectations of a hawkish Federal Reserve response.

Still, the outlet noted the Greenback could face challenges if safe-haven demand eases, pointing to building diplomatic momentum around a potential agreement to reopen the Strait of Hormuz after Qatari officials drafted an interim proposal and both Washington and Tehran signaled progress.

FXStreet added that last week’s Bank of England meeting reinforced expectations that policymakers are in no rush to tighten, with markets dialing back expectations for interest rate hikes in 2026, and it said the BoE voted 6-3 to hold rates steady while Governor Andrew Bailey indicated disinflation remains on track.

Latest closeGBP/USD 1.345 ▼0.3%

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