GBP/USD drops to one-week lows, near 1.3600
- Pound retreats versus the US dollar and also against the euro.
- DXY at two-month highs above 91.00, amid risk appetite.
The GBP/USD dropped further on the back of a stronger US dollar across the board and bottomed at 1.3610, the lowest level in a week. It remains near the lows, under pressure as the DXY holds firm to gains.
Wall Street soars, higher yields, stronger dollar
The greenback is rising sharply versus G10 currencies despite risk appetite. In Wall Street, the Dow Jones rises by 1.85% and the Nasdaq by 1.20%. Crude oil jumps by more than 2.5% with WTI above $55.00 at one-year highs. The improvement in risk sentiment hurt the US dollar only against emerging market currencies. The DXY climbed to 91.28, the highest level since early December.
Among the factors supporting the greenback are US yields. The 10-year yield is rising for the fourth consecutive session and stands at 1.11%, the highest level in almost two weeks.
The pound lost momentum across the board during the American session. EUR/GBP rebounded around the 0.8800 area and erased losses rising to 0.8835. Attention turns in the UK toward the Bank of England meeting. The decision will be announced on Thursday.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
