GBP/USD remains subdued around 1.2300 after rebounding from 14-month lows, US NFP eyed
GBP/USD remains subdued for the fourth successive day, trading around 1.2300 during the Asian session on Friday. The GBP/USD pair dropped to 1.2238 on Thursday, marking its lowest level since November 2023, as the Pound Sterling (GBP) struggled under mounting concerns about the United Kingdom’s (UK) fiscal and inflation outlook, which weighed heavily on investor sentiment.
Despite a surge in long-term UK bond yields— with the 30-year yield hitting its highest level since 1998 and the 10-year yield reaching levels last seen in 2008—the British Pound failed to find support. Typically, higher yields strengthen a currency, but in this case, the decline reflects capital flight driven by fears of persistent inflation and fiscal instability. Read more…
GBP/USD taps new 14-month low as NFP watch begins
GBP/USD tapped a fresh 14-month low on Thursday as the Pound Sterling rolls over further against the Greenback. Holiday-thinned markets are keeping one foot firmly in the safe haven US Dollar as investors await a fresh round of US Nonfarm Payrolls (NFP) data on Friday.
UK Chief Secretary to the Treasury Darren Jones spoke on Thursday, noting that UK financial markets continue to function in an “orderly way.” UK financial markets responded by promptly selling the Pound Sterling even further and stepping up their bets of further rate cuts from the Bank of England (BoE) throughout the year. Read more…
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