TODAY GBPUSD SIGNAL: GBPUSD ases from daily top amid modest USD bounce from one-week low, holds above 1.1400.



GBP/USD eases from daily top amid modest USD bounce from one-week low, holds above 1.1400

  • GBP/USD gains some positive traction on Tuesday, though the uptick lacks bullish conviction.
  • A goodish USD rebound from a one-week low turns out to be a key factor capping the upside.
  • Any meaningful downfall seems unlikely ahead of the FOMC and the BoE meetings this week.

TODAY GBPUSD SIGNAL: The GBPUSD pair builds on the previous day’s recovery move from the vicinity of mid-1.1300s, or its lowest level since 1985 and edges higher through the first half of trading on Tuesday. The pair stick to modest intraday gains through the early European session, though seems to struggle to capitalize on the move beyond mid-1.1400s and retreats a few pips from the daily peak.

: combination of factors assists the US dollar to attract some dip-buying following an early slide to a one-week low, which, in turn, acts as a headwind for the GBP/USD pair. Expectations that the Federal Reserve will stick to its faster rate-hiking cycle to tame inflation remain supportive of elevated US Treasury bond yields. In fact, the US central bank is widely expected to deliver another supersized 75 bps rate hike at the end of a two-day meeting on Wednesday.

TODAY GBPUSD SIGNAL Furthermore, the markets have been pricing in a small chance of a full 100 bps liftoff, which remains supportive of elevated US Treasury bond yields. The yield on the rate-sensitive two-year US government bond rose to its highest level since November 2007 and the 10-year Treasury note reached a level not seen since April 2011 on Monday. Apart from this, growing recession fears lend support to the safe-haven greenback and also contribute to capping the GBP/USD pair.Confuse Which Broker is best ?     , Here you can find the best regulated broker


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