- The pound is unable to break above 1.3930 against the US dollar.
- GBP / USD is in positive territory for the day, still facing downward pressure.
The GBP/USD it rose to 1.3925 after the start of the US session and then fell back to 1.3882. The pound is hovering around 1.3900, moving sideways on Monday, in positive territory for the day, but still facing some downward pressure.
The US dollar is moving without a clear direction. Hours ago it rose across the board and then gave away most of those gains as US yields continued to move lower and as US stock prices turned negative. The DXY is up 0.03% to 91.85, while the 10-year yield stands at 1.48%, close to Friday’s lows.
Investors await key economic reports later in the United States, with a focus on NFP Friday. End-of-the-month flows could trigger some additional volatility in the sessions to come.
As for the UK, ING analysts point out that it should be a quiet week for the data and also for the British pound. “The trade dispute between the UK and the EU has calmed down and it appears that the grace period on meat imports to Northern Ireland will be extended. The BoE did not bring too much surprise this week and although it was a bit more optimistic than expected. As expected, the Monetary Policy Committee refrained from signaling upcoming rate hikes in time. This suggests some stabilization of the British pound and should the EUR / USD continue its slow recovery towards and above the 1.20 level, it should take the pound higher with it. “
Technical levels
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