- GBP / USD reversed a sharp decline to the 1.3715 region and set new highs.
- The dollar weakened and lost the ground it had recovered in the market.
The GBP / USD climbed more than 80 pips after hitting three-day lows at 1.3715 and reached 1.3798, marking a high for the day. After failing to overcome 1.3800, it fell back slightly and is trading at 1.3785, in neutral ground for the day.
The rebound was driven by a decline in the dollar in the market, and also the downward correction of the EUR / GBP after reaching levels above 0.8700. The dollar index (DXY) failed to hold near 91.80 and fell to test Thursday’s lows below 91.50.
The dollar lost steam as yields on Treasuries fell. Bonds had the most significant rise in months. The 10-year rate fell to 1.53%, before rebounding. Now it stands at 1.56%.
Looking ahead to the next few hours, what happens in the bond market will continue to be key. To this are added the US data to be released on Friday (home start and consumer confidence). The better-than-expected data on Thursday did not boost the dollar, but stocks did. Wall Street is aiming for an opening at new all-time highs.
Technical levels
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