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GBP/USD holds near Feb 11 highs as USD struggles
The dollar’s weakness comes as traders scale back near-term Fed hike expectations and the US Treasury plans larger long-dated debt buybacks starting in September.
FXStreet reports GBP/USD is trading with a positive bias in the mid 1.3600s, staying close to its highest level since Feb. 11 and within reach of a breakout.
The article points to a weak US dollar as the key tailwind, citing reduced bets on an immediate Fed interest rate hike as price pressures cool, and the US Treasury’s plan to at least double buyback operations for long-dated government debt starting in September, which has pulled back bond yields.
It also notes potential limits to further USD losses from rising geopolitical risk, including the US Treasury secretary’s plan to announce what he called the toughest sanctions in history on Iran and Iran warning it would halt oil exports through the Strait of Hormuz and elsewhere if economic war continues.
Market focus is set for this week’s US Personal Consumption Expenditures (PCE) Price Index on Wednesday and Fed Chair Kevin Warsh’s appearance at the Jackson Hole Symposium, with investors watching for cues on the Fed policy path that could drive near-term USD moves; technically, the pair is looking for acceptance above the 1.3660 supply zone before the next advance.
Latest closeGBP/USD 1.354 ▲0.3%