Pound Sterling Price News and Forecast: GBP/USD soaring UK gilt yields raise fiscal concerns
|Pound Sterling plummets as soaring UK gilt yields raise fiscal concerns
The Pound Sterling (GBP) underperforms its major peers in a light United Kingdom (UK) economic calendar week. The British currency has tumbled as soaring UK long-term gilt yeilds have raised fiscal concerns. 30-year UK gilt yields surge to near 5.68%, the highest level seen since 1998.
UK bond yields have soared after Prime Minister Keir Starmer announced a reshuffle in cabinet, which he called as a transition "to the second phase" of his government, BBC News reported. Read more...
GBP/USD Forecast: Pound Sterling slumps as gilts selloff picks up steam
After posting modest gains on Monday, GBP/USD turned south and dropped to its lowest level since early August below 1.3380. Although the pair managed to rose back toward 1.3400, it finds it difficult to gather recovery momentum.
The broad-based selling pressure surrounding the US Dollar (USD) on growing concerns over the Federal Reserve's independency and the heightened uncertainty surrounding the trade regime allowed GBP/USD to edge higher on Monday. Read more...
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