- The pound is back against the US dollar and also against the euro.
- The DXY Index climbs to two-month highs above 91.00 amid appetite for risk.
The GBP/USD has extended its decline due to a stronger US dollar across the board and bottomed out at 1.3610, the lowest level in a week. At time of writing, the pair remains under pressure near daily lows as the DXY US Dollar Index holds firm to gains.
Wall Street soars, higher yields, stronger dollar
The dollar is rising sharply against the G10 currencies despite appetite for risk in the markets. On Wall Street, the Dow Jones is up 1.85% and the Nasdaq is up 1.20%. Crude oil jumps more than 2.5% with WTI above $ 55.00, at one-year highs. The improvement in risk sentiment has hit the US dollar only against emerging market currencies. The DXY index rose to 91.28, the highest level since early December.
Factors supporting the dollar include US yields. The 10-year yield is up for the fourth day in a row and stands at 1.11%, the highest level in nearly two weeks.
The pound has lost momentum across the board during the American session. EUR / GBP has bounced around the 0.8800 area and recovered the losses by climbing back to the 0.8835 region. In the UK, the focus is on the Bank of England meeting. The decision will be released on Thursday.
GBP / USD technical levels