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GBP/USD rebounds as US yields ease and oil prices slip

The pound was back above 1.3250 after Treasury yields pulled back from a 24-year high, while Brent fell below $100 a barrel as Gulf Crude exports recovered.

Reported · Written up by our desk · Major Pairs

Tuesday's rise in GBP/USD was driven mainly by moves in the US dollar, according to FXStreet. The pair held steady through a Bank of England inflation warning from external member Mann, then gained later, while EUR/GBP was left close to unchanged.

GBP/USD traded just above 1.3250, returning near the top of the range it has held since September 24. FXStreet said Treasury yields eased from Monday's 24-year high, lowering what investors earn from holding dollars and helping the pound.

The same session also saw Brent slip below $100 a barrel as Gulf Crude oil exports recovered. FXStreet linked the weaker crude to easing inflation worries that had helped lift US yields, though it added Brent remains about 40% higher than before the war.

FXStreet also cited the BoE's inflation outlook, with external member Mann saying above-target inflation has become embedded in Britain and is expected to reach about 4% around the turn of the year. Traders were pricing about an 85% chance of a Bank Rate hike on November 5, a factor FXStreet said contributed to GBP/USD holding its range.

Latest closeWTI crude $91.10 ▲3.2%|Brent $103.93 ▲3.7%|GBP/USD 1.323 ▼0.3%

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