- The DXY rises to highs since November above 93.00.
- The pound is unchanged against the dollar, one of the strongest in Europe.
The GBP / USD is trading unchanged on Tuesday around the 1.3760 zone and maintaining a bearish bias.. The price fell in European hours to 1.3741, and then rebounded to 1.3780. It maintains a downward bias in the short term, given a general strengthening of the dollar.
The rise in Treasury yields continues to be a key factor for the dollar’s advance. The 10-year rate reached a new high at 1.76%. The advance of the vaccination along with the current stimuli and in advance of the announcement of a public investment plan on Wednesday by Biden, are among the factors driving the exit of Treasury bonds and stocks on Wall Street.
The Stock futures are in positive territory. The economic calendar shows that the Case Shiller home price report will be released, and the final consumer confidence data from the Conference Board. In addition, several Federal Reserve officials (Quarles, Bostic and Williams) will speak.
The pound for its part is among the strongest of Europe, showing gains against the euro and the Swiss franc. The vaccination process in the United Kingdom, going at high speed, generates expectations that it will be one of the first economies to return to normal.
From a technical point of view, the intraday bias is bearish. A confirmation of GBP / USD below 1.3750 could lead to further weakness. The next support is at 1.3730 and then last week’s bottom at 1.3670.
On the upside, 1.3780 is the first resistance to consider. The next resistance at 1.3815 follows, ahead of Monday’s highs zone at 1.3850. The break on the latter would point to a greater strength of the pound.
Technical levels
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