- 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD extends the retreat to near 0.6650 as US Dollar finds footing
AUD/USD is back in the red, testing 0.6650 in Friday's Asian trading. A renewed US Dollar uptick undermines the pair, even as risk sentiment remains in a sweeter spot. However, the downside appears limited amid the RBA's hawkish stance and hopes for more Chinese stimulus could act as a tailwind for the Aussie.
USD/JPY drops back below 153.00 after Japan's verbal intervention
USD/JPY drops back below 153.00 early Friday, snapping the rebound. Japanese verbal intervention outweighs the upbeat market mood and the post-Fed US Dollar rebound, exerting a fresh bearish pressure on the pair. US sentiment data is next in focus.
Gold price slides back below $2,700 mark amid modest USD strength
Gold price met with a fresh supply and eroded a part of the overnight recovery gains. The Trump trade optimism revives the USD demand and weighs on the precious metal. Retreating US bond yields and bets for additional Fed rate cuts could help limit losses.
Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut
The crypto market has remained in the green following the Federal Reserve's decision to lower interest rates. Historically, Bitcoin and the crypto market have reacted positively to low interest rate environments.
Outlook for the markets under Trump 2.0
On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.