GBP/USD steadies on rise in gilt yields

Omkar Godbole FXStreet Contributor

FXStreet (Mumbai) - The GBP/USD appears to have stabilized around 1.4740 levels, after having recovered from the low of 1.4720 on the back of a moderate uptick in the UK gilt yields.

Pounds steadies as Yields rise

The yields finally posted moderate gains, which halted the losses in the cable. The 10-year Gilt yield in the UK inched up by 1.5 basis points (bps) 1.549, while the 2-year yield advanced 1.5 basis points to 0.448%.

Moreover, the yields have taken a beating since the last week on growing speculation that the Bank of England would hike rates more gradually than expected. This resulted in weak yields, which weakened the British Pound.

GBP/USD Technical Levels

The immediate resistance is seen at 1.4807 (5-DMA), above which the pair could test 1.4843 (10-DMA). On the flip side, support is seen at 1.4720, under which losses could be extended to 1.4633 levels.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD consolidates near 0.7000 as USD stays weak

AUD/USD holds steady above 0.7000 during Thursday’s Asian session, consolidating the previous day’s recovery gains from a near three-week low as the Democratic sweep in the US midterm elections and Iran diplomacy hopes continue to weigh on the US Dollar. Bulls, however, seem hesitant as focus shifts to Friday’s crucial US NFP report.

USD/JPY drifts lower to 158.25 on hawkish BoJ Minutes, weak USD

USD/JPY trades with a negative bias for the second straight day on Thursday as hawkish BoJ Minutes, showing members agreed to keep raising rates, and intervention risks support the Japanese Yen. Meanwhile, US midterm election results and hopes for Iran diplomacy keep the US Dollar depressed as focus shifts to Friday’s US NFP report.

Gold consolidates gains around $4,100

Gold now surrenders part of its initial bull run, although it sticks to the $4,100 region per troy ounce on Thursday. The yellow metal extends it recovery on the back of the lacklustre performance of the US Dollar and declining US Treasury yields following the US midterms elections.

The memory trade collapses as Sandisk sheds 17%, Micron sinks to May levels

If Wednesday's stock market rally was a broad vote of confidence in the Democratic sweep of the US midterm elections, Thursday is the other side of that coin. While the AI sell-off already began on Wednesday, it has kicked into higher gear on Thursday. The NASDAQ Composite has swung to a 4% loss in the morning regular session, while the S&P 500 and Dow Jones also shed Wednesday's gains.

NFP stress test: Six payrolls releases, measured in daily-loss limits

Friday's US employment report is usually previewed in terms of the headline number and the reaction in the Dollar. For a growing group of traders, those running funded or evaluation accounts with a fixed daily loss limit, there is a more practical question: how much of that limit can the first hour consume, regardless of direction?

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.