- The pound among the weakest currencies in recent hours.
- GBPUSD finds support before reaching 1.1400.
- The dollar rises after the mid-term elections in the US.
The GBPUSD broke lower after trading for hours between 1.1560 and 1.1515 and tumbled to 1.1417, the lowest level in two days. The setback was due to a strengthening of the dollar throughout the market, and also due to a weakness in the pound.
The currency of United Kingdom lost ground on all fronts in the last hour. The EURGBP reached at 0.8796, the highest level in four weeks. It also hit daily lows against currencies like the CAD and AUD. There was no particular factor behind it. The pound is still one of the most volatile currencies after the last two months of economic and political intensity in the UK.
The focus remains on the US midterm elections The result for the moment is not the “red tide” that was expected. There are still several elections to be defined (it could take days). The Republicans aim to have control of the House of Representatives, while in the Senate, the Democrats could even win a seat.
The markets are reacting with moderate declines. Treasury bond yields are stable. The DXY rises 0.30% after three days of falls.
Figures will be released on Thursday US retail inflationwhich is estimated to be key to the expectations of the Federal Reserve’s monetary policy.
Technical levels
Source: Fx Street
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