GBP/USD drops sharply to low 1.4000s as US bond yields surge
GBP/USD sold off sharply over the past few hours, dropping from session highs in the 1.4180s set shortly after the start of US trade to hit session lows at bang on 1.4000 in recent trade. The pair is now consolidating just to the south of the 1.4050 mark and trades lower by about 0.75% or over 100 pips on the day. Thursday is shaping up to be cables worst day since 15 January, though on the month, the pair still trades over 2.5% higher.
GBP/USD Forecast: Dollar’s demand finally taking its toll on the pair
The GBP/USD pair fell in the final hours of US trading, ending the day in the red around 1.4040. The pair bared quite well with the dollar’s demand, but the greenback found strength in soaring US Treasury yields after a 7-year bond auction resulted at 1.19% vs 1.14% ahead of the event. The UK macroeconomic calendar had nothing to offer, preventing the pound from advancing further despite the broad dollar weakens, as the UK currency is largely overbought. On a positive note, UK´s chief medical officials recommended downgrading the coronavirus alert level as pressure on the health system recedes. The UK will publish February Nationwide Housing Prices on Friday, hardly a market mover.
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