- GBP / USD witnessed a pullback of more than 50 pips from the two-day highs, around the 1.3929 area.
- A good recovery in US bond yields sustained the USD and put some pressure on it.
- USD bulls did not appear to be affected by disappointing US durable goods orders.
The pair GBP/USD It fell more than 50 pips from the two-day highs and fell to the lower end of its daily trading range, around the 1.3875-80 region during the early North American session.
A good recovery in US Treasury yields helped the US dollar stop its recent slide to the lowest level since early March. This, in turn, was seen as a key factor that did not help the GBP / USD pair capitalize on its positive intraday move, but instead triggered some selling around the 1.3930 region.
Meanwhile, the USD’s attempted recovery did not appear to be affected by disappointing US durable goods orders in March, which posted a modest 0.5% growth in March versus a 2.5% increase forecast. In contrast, orders that exclude transportation items matched market expectations and increased 1.6% during the reported month.
The data had little influence on USD price dynamics, although expectations that the Fed will keep rates low for a longer period prevented USD bulls from making aggressive bets. This should help limit any significant declines for the GBP / USD pair, as the market’s focus remains on the FOMC policy decision on Wednesday.
Meanwhile, US bond yields will play a key role in influencing USD price dynamics. Aside from this, the broader market risk sentiment could further boost demand for the safe haven dollar and produce some short-term trading opportunities around the GBP / USD pair.
Technical levels
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