Pound Sterling Price News and Forecast: GBP underperforms as UK gilt yields hit monthly low near 4.82%

FXStreet Team FXStreet

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...

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

GBP/USD surrenders some gains, back to 1.3420

GBP/USD holds on to moderate gains above 1.3400 the figure on Friday. Optimism surrounding the UK government’s leadership transition and expectations of further BoE tightening support the British Pound, while easing tensions in the Middle East and fading Fed rate-hike expectations weigh on the US Dollar.

EUR/USD turns positive, targets 1.1450

EUR/USD now picks up pace and advances toward the 1.1440 region on Friday, up modestly for the day. With no major economic data due, lingering uncertainty over the US-Iran conflict keeps investors cautious, limiting the pair's upside.

Gold remains offered, still below $4,100

Gold struggles to extend Thursday’s rebound and navigates below the $4,100 mark per troy ounce on Friday. Uncertainty surrounding the Middle East conflict limits the precious metal’s upside, which is also under pressure amid rising US Treasury yields across the curve.

Week ahead – US CPI and Warsh testimony to take centre stage, BoC eyed too

US inflation report and Warsh testimony to headline the week. Dollar to dominate amid slew of other US data and Mideast tensions. Amid fresh Iran escalation, China GDP to shed light on Q2 impact. Bank of Canada not expected to follow RBNZ with rate hike.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June Federal Open Market Committee meeting landed mid-round-trip, describing a world that had already stopped existing.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.