GBP/USD plummets to multi-month lows below 1.28 on UK politics, USD strength
- UK PM May is expected to present the timetable for her departure.
- US Dollar Index climbs above 97.70.
- The 10-year US T-bond yield gains nearly 1% on Thursday.
The GBP/USD pair came under a renewed bearish pressure in the last hour and slumped below the 1.28 mark for the first time since February 14. As of writing, the pair was trading at 1.2795, losing 0.42% on a daily basis.
Earlier today, reports of British Prime Minister Theresa May meeting with the 1922 Committee to present the timetable for her departure weighed on the British pound. Furthermore, opposition Labour Party Brexit spokesman Starmer told reporters that his party will vote against the UK PM May’s withdrawal agreement bill unless they were able to make a deal with the government before the vote to make it difficult for the currency to stay resilient against its rivals.
On the other hand, the decisive rebound witnessed in the 10-year US T-bond yield amid a lack of headlines surrounding the U.S.-China trade conflict seems to be helping the greenback gather strength on Thursday. At the moment, the DXY is up 0.14% on a daily basis at 97.70.
Today's data from the U.S. showed that weekly jobless claims fell to 212K in the week ending May 10 and came in better than the market expectation of 220K. Additionally, housing starts and building permits increased by 5.7% and 0.6%, respectively, on a monthly basis in April.
Technical levels to consider
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
