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GBP/USD pressured as US Treasury yields hit fresh 19-year highs

FXStreet notes 10-year US Treasury yields have reached 5.15%, strengthening the dollar as traders price another rate hike by year end.

Reported · Written up by our desk · Major Pairs

The British pound is under pressure against the US dollar, with GBP/USD down 0.12% to around 1.3225 during European trading on Thursday, according to FXStreet.

FXStreet attributes the move to a rally in US Treasury yields, where 10-year yields posted a fresh 19-year high at 5.15%, lifting the US dollar more broadly.

The US Dollar Index, which measures the greenback against six major currencies, is up 0.15% to about 101.32, its highest level in eight weeks. FXStreet also points to US rate expectations, with the CME FedWatch tool showing nearly a 55% chance of additional Fed hikes at the remaining policy meetings this year.

FXStreet adds that Fed messaging has remained hawkish despite acknowledging improving conditions for employment risks, and that this policy stance has helped underpin the dollar, keeping GBP/USD vulnerable to further declines.

Latest closeGBP/USD 1.323 ▼0.8%|Dollar index 101.16 ▲0.7%

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