- GBP / USD came under bearish pressure in the first US session.
- The US dollar index turned positive on the day above 92.30.
- The yield on 10-year US Treasuries has risen 1% on the day.
After fluctuating around 1.3800, the pair GBP/USD it lost its traction early in the US session and hit a fresh six-day low at 1.3750. At time of writing, the pair was down 0.52% on the day at 1.3752.
The USD begins to gain strength thanks to the yields
In the absence of significant fundamental drivers, the USD market valuation continues to drive GBP / USD movements. Supported by a 1% rise in the 10-year US Treasury yield, the US dollar index began to rise and turned positive for the day above 92.30.
Earlier in the session, US data showed that the trade deficit for goods and services in February widened to $ 71.1 billion, compared with analysts’ estimate of $ 70.5 billion, but this reading was largely ignored by market participants. On the other hand, the Markit services PMI for the UK reached 56.3 and disappointed market expectations and the preliminary estimate of 56.8.
Meanwhile, the chairman of the Federal Reserve Bank of Chicago, Charles Evans, reiterated that the Federal Reserve is expected to keep its monetary policy on hold for some time.
There will be no further release of US data for the remainder of the day, but the FOMC will release the minutes of its March meeting and investors will be looking for new clues about a possible time of a radical change in policy.
Technical levels
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