- The dollar plunged in minutes in the market after Putin’s comments, then moderated the decline.
- GBP/USD is recovering from lows since November 2021.
GBP/USD extended the recovery from lows in months, which it had reached in the Asian session at 1.3049 and climbed to 1.3119, marking a new high for the day, after comments from the President of Russia on a breakthrough in talks with Ukraine.
Vladimir Putin claimed that there were significant changes in the talks, which triggered further gains in stock markets, and weakened the dollar. After a sharp initial decline, the dollar moderated its fall.
Putin’s comments were not followed up by further details. At the same time, the Wall Street Journal is reporting that the bombing in western Ukraine has intensified. This means that the hours ahead could be highly volatile in light of the headlines about the war in Ukraine and heading into the weekend.
Completing the above context, next week will be the Federal Reserve and Bank of England monetary policy meetings.
Volatility is on the rise after comments from Putin. GBP/USD is attempting to assert itself back above 1.3100 which could give a sign of stability going forward. The trend and momentum remain down. A return below 1.3070 would leave the daily low exposed. On a break above 1.3140, the pound could ease the bearish tone.
Technical levels
Source: Fx Street
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