- GBP/USD attempts to break out of multi-day consolidation zone.
- The dollar among the currencies that rise the most on Monday.
- Drop in Treasury bond yields limits dollar appreciation.
The GBP/USD is falling on Monday, in a day marked by market fears of a military escalation on the Ukraine-Russia border, which is favoring haven assets. The pair hit a one-week low below 1.3500.
The dollar advances, fears too
In London, the FTSE loses 1.90% and is one of the best holding. The DXY yields 3% and the CAC 40 3.25%. Behind the risk-averse mood are fears of conflict between Russia and Ukraine, following warnings from US officials that Russian soldiers could cross the border as soon as this week.
The negative climate is boosting the dollar and at the same time the Treasuries. Lower bond yields take some of the steam out of the greenback. The 10-year rate stands at 1.92%, after reaching a one-week low of 1.90%.
The economic calendar is not on the radar of operators on Monday in the absence of data, and also because the focus is on the bags. Already on Tuesday the data can be keyhighlighting the one for employment in the United Kingdom and the one for wholesale inflation in the US. On Wednesday it will be the turn of the one for inflation in the United Kingdom and in the US, retail sales and the minutes of the last meeting of the Federal Reserve.
What is happening and what is coming could favor a scenario of a firm breakout of the current GBP/USD range. The pair for more than a week, despite the peaks and the floors, has been closing the sessions in the 1.3640 zone. If there is a good one above 1.3600, the pound will be positioned for more rises, while if it happens clearly below 1.3500, the bias will favor more losses.
Technical levels
Source: Fx Street
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.
