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Pound holds gains as US yields surge and USD firms

GBP/USD was last near 1.3252, while the US 10-year T-note rose above 5.26% and the US Dollar Index edged up toward a three-day high.

Reported · Written up by our desk · Major Pairs

The pound held modest gains even as US Treasury yields surged, with GBP/USD up 0.18% on Monday and trading around 1.3252. FXStreet said the pair climbed as high as 1.3280 during the session.

The report linked the dollar's rebound to rising US yields, with the US 10-year T-note up more than 10 basis points. It also cited a move higher in the US Dollar Index, which was up 0.15% to 101.18 near a three-day high.

Oil strength and shifting Middle East risk also supported the dollar, according to FXStreet. West Texas Intermediate was up more than 3% to $95.41 per barrel after President Donald Trump declined Iran's proposal to reopen the Strait of Hormuz, warning that attacks could resume after the US midterm elections.

FXStreet added that US bond yields moved higher as investors grew more confident the Federal Reserve will keep its tightening cycle, noting the US 10-year benchmark note reached 5.261%. It referenced a Bloomberg piece arguing that a renewed US yield curve inversion is becoming a new source of risk as Fed hikes continue.

Latest closeGBP/USD 1.325 ▲0.0%|Dollar index 101.03 ▼0.2%

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