GBP/USD in tight range just above 1.3050 on Viennese Saint

  • GBP/USD is trading in a tight range just above 1.3050 on Friday.
  • Rising US bond yields and aggressive Fed expectations benefit the USD.
  • Little volume and movement is expected on Good Friday.

The pair GBP/USD remains in a tight range above the 1.3050 level during the European session on Friday. Earlier, the pair had dipped to 1.3044 momentarily before recovering. The pair seems to be consolidating the sharp decline of the previous day.

It is worth recalling that the DXY US Dollar Index rose sharply on Thursday and hit its highest level since March 2020 at 100.76 fueled by the rise in US Treasury bond yields and safe haven money flows, which weighed heavily on the GBP/USD pair. In a matter of hours, the pair went from a high of 1.3147 to fall to a low of 1.3033, before recovering slightly and closing around 1.3075.

The steady rise in US bond yields has benefited the dollar and weighed on GBP/USD. The benchmark 10-year yield rose above the 2.80% level on Thursday.

For the rest of the day not much movement is expected in the currency markets, with the release of the New York Empire State Manufacturing Index and US industrial production data highlighting today’s Good Friday economic calendar. Due to today’s holiday, little movement and volume is expected in the markets.

GBP/USD technical levels

Source: Fx Street

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