- GBP / USD rose to 1.3512 against a background of risk appetite but was unable to sustain above the 1.3500 mark.
- The rise in Treasury yields continues to give strong support to the dollar.
GBP / USD rallied almost 50 pips from the low of the day and reached 1.3512, marking a high for the day. But, it could not assert itself above and fell back towards the 1.3485 area, in the run-up to the American session.
The pound is still in positive territory, clinging to a piece of the recovery from the three-day low around the 1.3430 region. The British currency got some support from equity markets, which are rising on Tuesday and also gaining ground against the euro, trading at month-highs.
Part of the fortress came from the prime minister’s announcement, Boris Johnson, which suggested that there would be no further tightening of the restriction measures despite the cases of COVID. Although Johnson warned that the country’s health system will remain under strain.
The dollar for its part, it continues to be favored by the Treasury bond market. The fall in the value of bonds is behind optimism in the market and the expectation of a faster adjustment by the Federal Reserve. On Tuesday there will be data from ISM manufacturing and on Wednesday and Friday key figures from the labor market.
Turning to UK economic data, the manufacturing PMI ended at 57.9 in December versus the preliminary estimate of 57.6.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
