British Pound holds near six-month highs as debt woes keep US Dollar rallies shallow
The British Pound (GBP) holds mild gains for the fourth consecutive day against the US Dollar (USD) on a calm Monday session, as ongoing concerns about the US Treasury’s bond buyback plans keep US Dollar bulls subdued. The GBP/USD pair is trading at the midrange of the 1.3600s in the early London Trading session, just below six-month highs, at 1.3675.
UK data released on Friday was mixed, as retail consumption increased below expectations in July, while August’s preliminary services and manufacturing activity data beat expectations, providing some support to the Pound. Read more…
British Pound holds near Feb. 11 highs vs weak USD as bulls await breakout above 1.3660
The GBP/USD pair trades with a positive bias around mid-1.3600s at the start of a new week and remains well within striking distance of its highest level since February 11, touched on Friday. Moreover, the fundamental backdrop favors bullish traders and backs the case for an extension of a nearly one-month-old uptrend.
The US Dollar (USD) continues its struggle to register any meaningful recovery and languishes near its lowest level in more than three months, which, in turn, is seen as a key factor acting as a tailwind for the GBP/USD pair. Traders have been scaling back their bets for an immediate interest rate hike by the US Federal Reserve (Fed) amid signs of cooling price pressures. Adding to this, the US Treasury announced last Wednesday that it would at least double buyback operations for long-dated government debt starting in September, which triggered a pullback in US bond yields. This keeps USD bulls on the defensive and validates the near-term positive outlook for the currency pair. Read more…
