Home›Forex›Major Pairs›Pound slips toward 1.3250 as US yields stay elevated

Pound slips toward 1.3250 as US yields stay elevated

GBP/USD softened in early Asian trading, with US Treasury yields above 5% weighing on the pound despite the BoE’s hawkish tone.

Reported · Written up by our desk · Major Pairs

Housing demand is the story? No. In early Tuesday Asian trading, GBP/USD fell toward 1.3250, according to FXStreet.

FXStreet attributed the move to US Treasury yields staying above 5% at multi-decade highs, which has supported the US dollar against the British pound.

The outlet said traders are also watching Fedspeak later on Tuesday, amid concerns that robust US economic data and energy supply risks have raised inflation worries and led investors to price in further Fed rate hike bets.

FXStreet added that hawkish comments from Bank of England policymakers could limit downside for GBP in the near term, pointing to BoE Deputy Governor Ramsden saying there could be a case for raising the Bank Rate if upside inflation pressures persist.

Latest closeGBP/USD 1.325 ▲0.1%

More like this

Sources