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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.
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 $89.70 ▼1.6%|Brent $100.73 ▼1.5%|GBP/USD 1.321 ▼0.2%