- The pound maintains losses against the US dollar and the euro.
- GBP / USD remains within a wide range of 1.38 / 1.40.
The GBP/USD it fell to 1.3820 after the start of the American session. It then rallied as the DXY approached daily lows, rising to 1.3856. At time of writing, it is trading around 1.3840, in negative territory for the day.
The pound is down against the dollar and also against the euro. EUR / GBP is trading above 0.8600, the highest level in almost a week. In Europe, the best performing Swiss franc is Monday, probably reflecting some risk aversion that also weighs on the British pound.
The US dollar lost momentum as the upward movement in US yields slowed. The 10-year yield approached 1.70% and fell to 1.68%. The DXY is falling 0.15% to 91.78, after failing to regain the 92.00 level.
On Wall Street, US stocks are trending higher. The Dow Jones is up 0.22% and the Nasdaq is up 1.29%. US economic data disappointed expectations. The Chicago Fed National Activity Index unexpectedly fell to negative to -1.09 in February from the 0.75 reading. It could be the first contraction since last April. If replicated with other indicators, the figures could show that the US economy is not as strong as many analysts believe.
Technically, 1.3800 is a relevant support on GBP / USD. A lower daily close would indicate more losses. On the upside, the level to watch is 1.3895 / 1.3900 and the next resistance is at 1.3950. In a broader perspective, the 1.40 area is the level that the pound must break to end the current consolidation phase.
Technical levels
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