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GBP/USD slips back after clearing 1.3550 peak

The pound’s push above 1.3550 was offset within hours, as the US Dollar Index weakened and rate odds for a September Fed hike fell further.

Reported · Written up by our desk · Major Pairs

GBP/USD climbed above 1.3550 for the first time in three months, reaching the high of the day’s trading range, but then gave up the entire move within hours for a net gain of under 10 pips, according to FXStreet.

FXStreet said the broader dollar weakness drove the move, noting the Dollar Index dropped below its 200-day EMA to its weakest level since June while major currencies rose as a group.

The same session saw the Euro hit a two-month high, gold firm, and the pound test three-month peaks, a pattern FXStreet described as consistent with one currency being sold rather than multiple being bought at once.

FXStreet added that futures continued to trim September Federal Reserve hike odds, and pointed to a war-related deadline tied to a 60-day framework involving the Strait of Hormuz expiring with no agreement, which helped push crude oil up about 3% and lift the 30-year Treasury yield to above 5.31%.

Latest closeGold $4,432.00 ▲1.6%|WTI crude $82.40 ▲1.4%|GBP/USD 1.354 ▲0.3%

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