GBP/USD tumbles to 1.3661, five-month low
|- Commodities and global markets decline sharply on fears over delta.
- Pound falls versus USD, JPY, EUR and CHF amid risk aversion.
- GBP/USD heads for the lowest close since March.
The GBP/USD dropped further during the American session and bottomed at 1.3661, reaching the lowest intraday level since February. It then trimmed losses, rebounding toward 1.3700.
Cable remains in negative territory, down almost a hundred pips, about to post the lowest close since March and for the first time in almost a year, below the 200-day moving average.
Risk aversion weighed on the sterling. Global markets are having the worst day of the year so far. European indices dropped 3% on average and in Wall Street, the Dow Jones drops 2.10%.
The rush for safety weighed on commodities and boosted Treasuries. The 10-year yield fell to 1.17%, the lowest since February. Lower yields and risk aversion boosted the yen that is the best performer on Monday. The pound is being affected by risk sentiment. EUR/GBP trades at monthly highs above 0.8600.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.