Oil prices expanded their gains in the morning of trading today, in the European market,…
GBPUSD bounces back from a one-month high as the US dollar rebounds
GBPUSD fell on Monday morning in the European market, and recorded the first daily decline with the activity of correction operations and taking profits after the pair recorded its highest level in a month earlier in trading, in addition to the recovery of the US dollar and its rise against most Major currencies are driven by a rebound in US Treasury yields.
The GBPUSD pair traded against the US dollar at the level of $1.3719, losing about 0.25% from the opening level of today’s session at $1.3752. The pair closed trading last Friday, achieving gains of about 0.6% for the third day in a row, and also recorded its highest level in four weeks at $1,3773.
GBPUSD recorded its second weekly rise
Last week, the Sterling Pound recorded its second consecutive weekly gain, with gains of around 1.0% against the US Dollar, supported by the increasing odds that the Bank of England is heading towards tightening its monetary policy soon, following the Federal Reserve.
Bank of England President Andrew Bailey spoke today saying that the current rise in oil prices will be the main reason for the continued increase in the inflation rates in the country, and this will force the bank to act in the event of risks affecting the economy.
The US dollar is rising, supported by the Treasury yields
The US dollar rose against a basket of major currencies in the morning trading on Monday, to trade near its highest level in a year, which it recorded last week. This rise comes with the support of increasing expectations of higher inflation rates and higher long-term US Treasury bond yields.
US 10-year Treasury yields rose for the second day in a row by 2.75%, close to a four-month high of 1.636%.
Expectations are growing that the Federal Reserve will tighten monetary policy during its meeting next month.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.