British Pound underperforms as UK gilt yields hit monthly low near 4.82%
The British Pound (GBP) trades lower against its major currency peers, is down 0.25% to near 1.3470 against the US Dollar (USD) during the European trading session on Tuesday. The British currency faces selling pressure as yields on United Kingdom (UK) gilt securities have declined significantly due to easing hopes of a near-term interest rate hike by the Bank of England (BoE).
10-year UK gilt Yields are still down 1% to near 4.86% in the European trade, even after recovering a majority of its early losses. Earlier in the day, yields on 10-year UK gilts dropped to 4.82%, the lowest level seen in over a month. Read more…
GBP/USD bulls get rejected at 200-SMA
Overview:GBP/USD shifted into corrective mode after its upward trajectory off six-week lows was rejected near the 200-SMA, signaling fading bullish momentum and increasing downside risks in the coming sessions.
Momentum:The RSI and stochastic peaked in the overbought area and are now pushing lower. The MACD is drifting toward its red signal line, endorsing the softer price action. Read more…
GBP/USD under pressure amid growing domestic concerns
GBP/USD retreated slightly on Tuesday after a positive Monday, moving down to 1.3486. The market continues to assess the economic data released late last week. The US dollar has so far drawn support from lingering uncertainty in the Middle East, which has encouraged investor caution and supported demand for safe-haven assets.
April data showed UK retail sales fell 1.3% month-on-month, the sharpest decline in nearly a year and noticeably worse than market forecasts. Consumers are cutting back on spending amid high fuel prices, rising energy bills, and concerns around the Middle East conflict. Read more…
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